Morning Gold & Silver Market Report – 8/5/2013
GOLD HOLDING ABOVE $1,300
The Gold price is tentatively holding above $1,300 an ounce on Monday as the U.S. dollar showed signs of softening due to mixed U.S. data last week. Euro zone data showed business expanded for the first time in 18 months putting pressure on the dollar. In addition, strong GDP and factory data offset weak hiring data helping the Precious Metal finish above $1,300. As always, the topic of the Federal Reserve’s Quantitative Easing tapering schedule comes into play and seriously affects the price of Gold. Societe Generale analyst Robin Bhar said, "We had a good rally on Friday that seems to have stalled now as the timetable for tapering remains unclear and obviously investors will be watching the data that is coming through now for clearer direction.”
Internationally, global stock priced inched up in overnight trading on the weaker dollar and conviction that the U.S. Federal Reserve will maintain its current stimulus program. Mike van Dulken, head of research at Accendo Markets, said, “The market is getting some support as the (U.S. stimulus) tapering timetable is likely to be changed." There is growing evidence that central bank policies are driving the economic recovery around the world and supporting riskier assets. The fear of tapering by the U.S. has slowed that down some but not completely. Mark Keenan, cross-commodity research strategist at Societe Generale said, "Markets are very much driven in the immediate future by the data that gives us an idea as to when the (Fed) tapering is going to start taking effect."
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,308.50, Down $4.00.
- Silver, $19.77, Down $0.23.
- Platinum, $1,445.00, Down $7.50.
- Palladium, $733.50, Up $2.30.
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