Mid-Day Gold & Silver Market Report – 9/6/2013
POOR EMPLOYMENT DATA KEEPS FED TAPERING IN QUESTION
A disappointing U.S. jobs report has helped push back the expectations of imminent stimulus tapering and boosted Precious Metals prices today. The Commerce Department stated that 169,000 new jobs were added during the month of August which fell below analyst’s forecasts. The news resulted in a moderate spike in both equities and Precious Metals as the belief that the disappointing figures will force the Federal Reserve to perpetuate its current level quantitative easing (QE). Friday’s jobs report “has some observers thinking twice about whether the Fed will taper at the FOMC meeting later this month,” currency analysts at Brown Brothers Harriman, wrote. Many economists have predicted an announcement that the Fed will begin tapering its current level of monetary stimulus at the next Federal Open Market Committee (FOMC) meeting scheduled for September 17-18. With U.S. employment being the central focus of QE, poor jobs numbers could postpone stimulus reduction and further boost Gold and equities markets alike.
The sluggish employment report continues to keep Fed monetary policy in the forefront of investor focus, overshadowing the ongoing tension between Russian-backed Syria and Western nations. Along with Gold and Silver, U.S. stocks have experienced moderate gains following the release of August’s jobs data. “It’s a very skittish stock market,” John Augustine, chief market strategist at Fifth Third Bancorp, said. “We’re in a period where markets will react quickly to external news from a variety of sources, whether it’s the bond market, the Middle East, or one single economic report.” With this month’s FOMC looming, weak jobs data could cause Fed officials to lightly decrease the level of tapering they had planned or forego immediate reduction plans altogether.
At 1:08 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,390.40, Up $15.40.
- Silver, $23.89, Up $0.61.
- Platinum, $1,497.00, Up $13.90.
- Palladium, $696.00, Up $9.80.
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