Morning Gold & Silver Market Report – 9/26/2013
DEBT CEILING WORRIES STRESS GOLD AS SAFE-HAVEN
The Gold price is little-changed in morning trading after giving up small gains following economic data releases. Mitsubishi analyst Jonathan Butler believes that more of the same could be expected in the short-term. He said, “I don't think there is going to be a situation quite like in 2011 [when the price hit a record on debt ceiling worries], but sentiment is helping fuel some safe-haven buying and investors don't want to be too short Gold at this time. But we are not seeing any major breakout from this levels and Gold could well move sideways in the coming days until we have some more certainty on where we are headed with the U.S. budget negotiations.”
U.S. stock futures added to a mild rise after two reports were released this morning. Jobless claims unexpectedly fell to 305,000 and the four-week moving average fell to its lowest level since June 2007. Also, the government’s third and final review of gross domestic product showed no change to the 2.5 percent growth. Economic data has been a major focal point in discussions among U.S. Federal Reserve policymakers regarding tapering its quantitative easing program.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,335.20, Down $3.00.
- Silver, $21.88, Down $0.04.
- Platinum, $1,424.70, Down $5.10.
- Palladium, $724.10, Down $0.60.