Closing Gold & Silver Market Report – 8/5/2013
QUESTION REMAINS ON HOW FED WILL APPROACH TAPERING MONETARY POLICY
Today, Gold fell from positive economic data, but was able to stay above its supported level of $1,300 an ounce. The Commerce Department reported that U.S. manufacturing grew in July at its quickest rate in more than two years. “The economy is healing, and if the economy is healing then it doesn't require the assistance of the Fed,” said John Stephenson, who helps oversee about $2.7 billion (CAD) at First Asset Investment Management Inc. in Toronto. “Whether tapering happens tomorrow or next year, it’s coming, and the market knows it.” The U.S. Federal Reserve’s plan to cutback fiscal policy has been the focal point for investors. The announcement created more confusion in the market as mixed economic data continues to be reported, and investors have no sense of what direction the Fed may decide to take.
Analysts are anticipating economic data out of China this week with hopes that the country is heading out of a financially difficult time. Released over the weekend and providing a great start to the week, China’s non-manufacturing Purchasing Managers’ Index indicated growth in their service sector. “Markets will focus on industrial production and trade this week, with a particular focus on exports. Expectations are subdued, which means it will not be difficult to exceed them,” Dariusz Kowalczyk, senior economist and strategist at Credit Agricole, said. Raymond Yeung, senior economist at ANZ, is not convinced by the data, saying, “We expect that all these real activity data to remain on a downtrend.”
At 5:07 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, 1,304.00, Down $8.50.
- Silver, $19.76, Down $0.25.
- Platinum, $1,451.90, Down $0.60.
- Palladium, $733.80, Up $2.50.
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