Mid-Day Gold & Silver Market Report – 9/4/2013
GOLD DROPS AS INVESTORS AWAIT CONGRESSIONAL VOTE ON SYRIAN CONFLICT
Precious Metals prices have fallen today as safe haven investors remain focused on the conflict between the U.S. and Russian-backed Syria. “Russia’s objections are taking some premium out of gold as it’s becoming increasingly clear that U.S. will face opposition,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc., said. “Also, the tapering worries remain” regarding the timing for the Federal Reserve to reduce the current level of quantitative easing. Gold has mounted an impressive rally over the summer climbing 20 percent from its three-year low of $1180 in late June. Today’s price dip marks that largest single day drop for Gold and Silver in eight weeks. As we enter September, Precious Metals investors will continue to focus intently on Western conflict with Syria and the possibility of the Fed scaling back its monthly asset purchase program.
U.S. stocks have risen today as markets continue to weigh the possibility of a military strike against Syria. The energy sector has been extremely volatile since the inception of the conflict and investors will continue to await a congressional vote to move against the nation, which is suspected of using chemical weapons on civilians. "We're waiting for the vote, and then to see what actually happens," said Mark Grant, managing director at Southwest Securities in Fort Lauderdale. "People hope there will just be a tactical strike and that's it. But there are worries about retaliation and a wider conflict isn't priced into the market."
At 1:25 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,392.00, Down $22.00.
- Silver, $23.47, Down $0.98.
- Platinum, $1,496.00, Down $43.20.
- Palladium, $695.50, Down $21.40.
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