Morning Gold & Silver Market Report – 10/1/2013
U.S. GOV’T SHUTS DOWN, GDP COULD TAKE HIT
Precious Metals prices fell in overnight trading, shrugging off brief gains immediately after the U.S. government shut down for the first time in 17 years. Investors appear to be betting that the matter will be resolved shortly. One major concern, however, is that Congress could potentially have an even harder time with the debt-ceiling deadline in just a couple weeks. Commerzbank analysts explained the worst-case scenario, writing, “In the worst case, the country could actually face insolvency, and while there is very little chance of it coming to that, such a development would seriously push up Gold prices.”
Macroeconomic Advisors released a report that explained the potential effect of a government shutdown on gross domestic product (GDP). The report showed that a two-week shutdown could impact GDP by 0.3 percent, a three-week shutdown would have a 0.5 percent impact, and a month-long shutdown could reduce GDP by 0.7 percent. An estimated 800,000 federal government workers are now off the job as Congressional Republicans and Democrats battle over President Barack Obama’s Affordable Care Act.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,297.30, Down $31.70.
- Silver, $20.93, Down $0.81.
- Platinum, $1,376.60, Down $34.30.
- Palladium, $719.40, Down $7.80.
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