Closing Gold & Silver Market Report – 7/8/2013
FED TAPERING EXPECTED IN SEPTEMBER; STRIKES IN SOUTH AFRICA MAY AFFECT PLATINUM
Gold felt the pressure last Friday after the Bureau of Labor Statistics reported a better-than expected nonfarm payrolls increase for June. Once the report was released, speculation began quickly on when the Federal Reserve might taper fiscal policy. “The unemployment rate remained at 7.6 percent, and our economists maintain their 'Septaper' view that the Fed will begin to reduce the pace of its asset purchases at the September meeting,” Barclays wrote in a research note on Monday. Barclays noted that physical demand may have slowed due to a seasonal break with analysts expecting an increase toward the fall season for the Asian Markets.
The price and supply of Platinum is now a major concern for investors with confirmation that two Anglo American Platinum mines are on strike in South Africa. The strikes are due to the mining industry’s wage negotiation period, which is a critical time for this line of business. “If this strike results in a significant loss of production, it's going to help support the price [of Platinum],” Robin Bhar at Societe Generale told CNBC. “The ongoing industrial unrest across South Africa is already having an impact on Platinum prices – and the situation is not going to get better soon.”
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,238.20, Up $23.00.
- Silver, $19.13, Up $0.30.
- Platinum, $1,360.20, Up $33.80.
- Palladium, $697.10, Up $19.60.
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