Mid-Day Gold & Silver Market Report – 10/1/2013
PRECIOUS METALS FEELING INVESTORS LACK OF FAITH
Precious Metal prices have taken a downward trend through mid-day trading. Its lack of safe-haven appeal has pushed many traders into a sell off. Many investors are taking note of the U.S. government shutdown; however, it is not currently having a major effect on prices. Jeffrey Wright, managing director at H.C. Wainwright LLC, said, “Part of the reason for the deflationary sentiment is the federal government is not expanding the deficit during the partial shutdown.” This could be viewed as temporary as he went on to say, “The bigger battle comes in two weeks with the debt ceiling. No deal on the debt ceiling will lead to safe-haven demand from all quarters and should cause a run on the U.S. dollar.”
Stock markets worldwide have seen a boost today. Many feel the U.S. government shutdown isn’t having much of an effect with the debt limit increase conversations yet to take place. Head of global equities at Fidelity Worldwide Investment, Richard Lewis, said, “This is going to be much more important because a failure to extend the debt ceiling would stop coupon payments on bonds, creating a technical default that would cause a riot in bond markets.” This could boost Gold’s safe haven appeal as investors look for a place to store their wealth.
At 2:12 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,290.50, Down $38.50.
- Silver, $21.18, Down $0.56.
- Platinum, $1,386.30, Down $24.60.
- Palladium, $719.30, Down $7.90.