Morning Gold & Silver Market Report – 7/31/2013
MARKETS PLAY WAITING GAME
U.S. stock futures are holding on to fractional movements this morning as investors await today’s stack of economic data. Second quarter GDP, private-sector payrolls and the outcome of the U.S. Federal Reserve meeting will add fuel to the fire and move the needle one way or the other. It’s no surprise that investors are cautious after the selloff in May when the Fed commented on the future of quantitative easing. Alpari U.K market analyst Craig Erlam said, “If we get a strong [GDP] figure, we’ll probably see a lot of choppiness as traders try to guess how the Fed will react to it this evening. I’d say there would still be more buyers than sellers on good news, as some people have just accepted that tapering will occur later this year and are solely focused on fundamentals. However, that could all change later if the Fed indicates in any way that tapering will be delayed at all.”
Precious Metals, especially Gold, have felt the shifting winds of change as the Federal Reserve debates the time frame of tapering. The upcoming announcement from the Fed will undoubtedly push prices one way or the other. There seems to be a sentiment with Gold investors that the tapering process will make the yellow metal, which pays no dividend or interest, particularly sensitive to rising interest rates. However, emerging markets account for about three quarters of Precious Metal purchases worldwide. Juan Carlos Artigas, the World Gold Council’s head of investment research, said, “Gold is not only a store of wealth but it is also bought around the world in periods of higher income growth as we have seen in emerging markets.”
At 9:01 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,325.50, Down $0.90.
- Silver, $19.80, Up $0.03.
- Platinum, $1,437.40, Down $1.10.
- Palladium, $733.70, Up $3.60.