Morning Gold & Silver Market Report – 8/29/2013
METALS VOLATILE ON ECONOMIC DATA
Precious Metals prices fell after the release of two bits of economic data this morning, but have since recovered from those losses. The second-quarter U.S. gross domestic product estimate was revised upward from 1.7 percent to 2.5 percent, while the weekly jobless claims report dropped by 6,000 from last week. These positive reports are expected to again raise expectations for the U.S. Federal Reserve to taper its quantitative easing program, which has been highly supportive of Precious Metals prices in the past. However, there is also speculation that recent tensions in Syria will keep the Fed from beginning tapering.
Wedding season in India is approaching, though INTL FCStone’s Edward Meir says the Indian rupee’s slide against the U.S. dollar “will almost certainly raise fresh doubts about Indian Gold demand going into the wedding season, especially now that the impact of a weaker currency is being magnified by sharply higher Gold prices.” India is the world’s top consumer of Gold.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,413.60, Down $7.20.
- Silver, $24.23, Down $0.23.
- Platinum, $1,530.10, Down $11.00.
- Palladium, $742.50, Down $5.00.