Closing Gold & Silver Market Report – 9/30/2013
PRECIOUS METALS DIP AS GOVERNMENT OFFICIALS ATTEMPT TO RAISE DEBT LIMIT AT THE LAST MINUTE
Precious Metals remain slightly down for the day ahead of a possible U.S. government shutdown. Gold was hit hard this year during the first quarter when prices dropped dramatically, but the yellow metal has risen 8.4 percent so far this quarter as the market has become more bullish for several reasons. Investors have been more attracted to Gold in particular as the Federal Reserve has been sending mixed messages on its future plans with fiscal policy along with the condition of the U.S. economy. “The Fed has made it clear that the economy is weak, and the stimulus spigot will be open full-bore,” John Stephenson at First Asset Investment Management Inc., said. “That means they’re continuing to inject more into the money supply, and that is a bullish argument for Gold.”
The U.S. congress has until Oct. 17 to come to an agreement on raising the debt ceiling to avoid default, but if it’s not done today, we could see the government shut down. The economic effect could include the closing of non-essential operations that include sending hundreds of thousands of workers home. It was made apparent Sunday after remarks made by House Majority Whip Kevin McCarthy that the House of Representatives may attempt to find a resolution to dodge a shutdown at the last minute.
At 5:01p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,331.20, Down $10.00.
- Silver, $21.75, Down $0.11.
- Platinum, $1,404.70, Down $13.00.
- Palladium, $723.40, Down $8.40.