Mid-Day Gold & Silver Market Report – 9/26/2013
BUDGET STANDOFF FAILING TO SIGNIFICANTLY IMPACT MARKETS
News showing a decline in weekly unemployment numbers has trumped budget negotiation concerns and weak home sales data to push the Gold price lower Thursday. Following a round of technical buying, Gold’s safe haven appeal was temporarily present during Wednesday’s session, driving the metal up for the first time in four days. However, today it appears as the majority of investors and speculators are comfortable with the prospects surrounding budget discussions in Washington. “Market players evidently expect the parties to reach an agreement in good time and do not anticipate the sort of lengthy political wrangling that was seen two years ago. According to various politicians, however, the U.S. Congress appears deeply divided,” Commerzbank Commodity Research analysts wrote. Silver has followed Gold’s lead and is trading lower today as the U.S. Commodity Futures Trading Commission’s investigation into potential Silver market manipulation came to a close, concluding there were no suspicious patterns in the massive number of fast-paced electronic trades. Regardless of any short-term manipulation, “[P]hysical buyers have a long-term view and are much more concerned with the U.S. debt burden and the consequences to the purchasing power of the dollar,” APMEX chief executive officer Michael Haynes said.
Early gains have been trimmed in the U.S. stock market today as the budget stalemate continues to worry some investors. Today’s modest gains follow the year’s most extensive losing streak for the S&P 500. However, a majority of market speculators remain confident that the current impasse in Washington will be resolved in a timely manner. “Washington has been dragging their feet as of late but eventually they’ll be forced into action,” Robert W. Baird & Co. head of U.S. equity sales Patrick Spencer said. “We’ve been down this road before. It’s quite natural and healthy to have pull-backs in a bull market. We’ll shift into a stronger gear with a settlement on the budget and what I think will be a very positive earnings season.”
At 1:03 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,325.30, Down $12.90.
- Silver, $21.79, Down $0.13.
- Platinum, $1,410.50, Down $19.30.
- Palladium, $722.50, Down $2.20.