Mid-Day Gold & Silver Market Report – 7/31/2013
ECONOMY WEIGHS ON GOLD AS INVESTORS AWAIT FOMC RESULTS
Gold is feeling the downward pressure imposed by mostly positive economic factors today. With positive news regarding domestic economic growth of 1.7 percent during the second quarter and another strong month in the jobs market, it is little surprise that the safe haven appeal of Precious Metals is temporarily weakened. Though Gold and Silver are experiencing modest setbacks this morning, most investors view the results of this week’s Federal Open Market Committee (FOMC) meeting as the most critical determinant of Gold’s short-term future. “Basically, bullion’s short term outlook is still depends on the FOMC statement … and thereafter the U.S. nonfarm payroll report on Friday. Industrial PMIs on both sides of the Atlantic, as well as the [European Central Bank] policy statement on Thursday, are also set to add to choppy Gold trading this week,” VTB Capital analyst Andrey Kryuchenkov said.
Stocks are up slightly this morning as reluctant traders await the Federal Reserve’s policy statement set to be released this afternoon. Though most experts predict little deviation from last month’s message, many investors are still anxious to see if there will be any indications that a tapering of quantitative easing may occur. “We don't really expect to make a big change in announcement, but of course everyone will be reading between the lines to see whether the Fed will start tapering at the end of this year or early next year,” ACE Investment Strategists chief trader Yu-Dee Chang said.
At 1:10 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,311.90, Down $14.90.
- Silver, $19.63, Up $0.15.
- Platinum, $1,431.80, Down $7.30.
- Palladium, $727.00, Up $3.20.