Morning Gold & Silver Market Report – 7/29/2013
IMPORTANT WEEK FOR STOCKS; GOLD STARTING STRONG
While summer tends to be a slower time of the year for trading stocks, this week promises to be a bit more interesting. The Federal Reserve once again is meeting this week to pick up the popular topic of tapering the economic stimulus program. In addition, a large percentage of the S&P 500 companies report earnings and big oil like BP, Exxon, and Chevron all report second quarter earnings this week. And as per usual, the GDP is released on Wednesday and the jobs report comes out on Friday. Ward McCarthy, chief financial economist at Jefferies said, "Given there's no chance the Fed's going to do anything at all...I think you have to look at the GDP data and jobs data as more telling about the Fed than this [Federal Open Market Committee] meeting."
The Gold price started overnight trading with a dip but has since rebounded and is posting gains, building on a three week positive run. The same factors that are giving equity investors a reason to doubt, and therefore are driving markets lower, are supporting Gold prices. As the U.S. dollar suffers, dollar priced commodities like gold, become easier to afford. Likewise, as the dollar strengthens the opportunity cost for buying gold increases, making it more expensive to buy the Precious Metal. Saxo Bank senior manager Ole Hansen said, "This week offers several opportunities to test whether the rally can be sustained with the central banks' meetings and the U.S. non-farm payrolls on Friday."
At 9:17 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,330.70, Up $6.80.
- Silver, $19.97, Up $0.11.
- Platinum, $1,440.10, Up $16.30.
- Palladium, $733.30, Up $7.80.
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