Mid-Day Gold & Silver Market Report – 9/30/2013
LARGEST ISSUE FACING MARKET TODAY: COMPLACENCY
U.S. stocks dropped sharply in morning trading. Bruce Bittles of RW Baird & Co. explained that there could be more to this than meets the eye. He said, “It’s difficult to say what these politicians will eventually put together, but the largest problem the market faces here is not per se the budget controversy, or the debt ceiling, or even quarterly earnings, it’s complacency, which is unsettling because it opens the possibility of a larger decline on any negative news.” The U.S. Senate will convene at 2 p.m. (ET), and the next update is expected then.
Gold and Silver prices have recovered slightly from morning lows. Economic uncertainty, like the problems facing Washington at the moment, has historically been bullish for Gold. Adam Koos of Libertas Wealth Management Group said that “chances are some silly kick-the-can bill will be passed to delay any ‘real’ decision to a later date. My guess is that they’ll turn it into a political fire fight between now and Thanksgiving.” After mentioning that inflation and interest rate spikes would be very bullish for Gold, he added, “The grand daddy of them all will be the Fed’s decision to start unloading their balance sheet, but we’ve got some time before that happens.”
At 1:08 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,334.20, Down $7.00.
- Silver, $21.79, Down $0.07.
- Platinum, $1,409.90, Down $7.80.
- Palladium, $726.20, Down $5.60.