Morning Gold & Silver Market Report – 6/6/2013
ECB HOLDS RATES; MARKETS AWAIT U.S. JOB NUMBERS
The European Central Bank held its benchmark interest rates at record lows today spurring a rebound from a six-week low for the European markets. U.S. indexes are also up on the news. Investment manager Chris Godding at Signia Wealth Ltd. in London said, “You need the global economy to pick up, you need confidence to pick up. There’s a lot of excess capacity in the European economy and there’s a lot of potential. The ECB just has to do its job in making sure the liquidity is there for that potential to be realized.” The move, or lack thereof, by the ECB to keep rates low indicates a desire to help that potential be realized.
The Gold price is hovering around the all-important $1,400 mark as investors wait for ECB President Mario Draghi to talk about the decision to keep rates low today. Investors are also waiting to hear anything from Draghi about negative interest rates as these would be favorable for the Gold price and other non-interest bearing assets. The big news story for Gold will be tomorrow’s U.S. non-farm payroll numbers. Danske Bank analyst Christin Tuxen said, “And of course people are looking at tomorrow's U.S. non-farm payrolls, which will be instrumental to judge whether the Fed tapering is going to come sooner rather than later - whether it is in September or December that this will be announced is the big question for everything that is dollar sensitive at the moment, including Gold.”
At 9:09 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1399.50, Down $1.00.
- Silver, $22.48, Down $0.11.
- Platinum, $1516.60, Up $4.50.
- Palladium, $758.00, Up $1.60.
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