Morning Gold & Silver Market Report – 9/5/2013
METALS GIVE UP GAINS AFTER ECONOMIC DATA
Precious Metals prices started the morning slightly higher, and U.S. stock futures were slightly lower. That changed, however, with a slew of economic data releases. Though the ADP jobs report showed a less-than-expected gain of 176,000 jobs, U.S. second-quarter productivity was revised sharply upwards to 2.3 percent from 0.9 percent, and weekly jobless claims fell by 9,000 instead of the expected 2,000. The combination of reports caused a reversal in pricing, with Precious Metals giving up gains and stock futures erasing losses.
News of a potential military response in Syria seems to be heavily affecting the Gold price. When expectations are high that a U.S. response will happen, the Gold price reacts positively. At the moment, however, it seems that expectations have waned for a military response, so the Gold price doesn’t have that area of support. Many investors may be waiting on the sidelines in anticipation of the Federal Reserve meeting later this month. Saxo Bank’s Ole Hansen said, “The fact we are now less than two weeks away from the very eagerly awaited Fed meeting (means) some longs have been reduced, putting the metals on the back foot. I'm looking for a $1,379 to $1,397 range today. A break below Monday's low will obviously test the resolve in the market, but I think support will be found ahead of key support towards $1,350, leaving Gold rangebound in the near term.”
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,391.00, Down $1.00.
- Silver, $23.41, Down $0.02.
- Platinum, $1,493.30, Down $2.40.
- Palladium, $687.80, Down $9.50.
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