Mid-Day Gold & Silver Market Report – 10/2/2013
CURRENT POLITICAL, ECONOMIC CLIMATE BOOST GOLD
The beginning of the second full day of a U.S. government shutdown has taken its toll on markets as a weaker dollar pushed Gold up and forced equities down. With government officials still at an impasse regarding passing a budget bill, the debt ceiling looming on the horizon and jobs numbers falling below initial projections, there was little to prevent Gold from rebounding off of an eight week low realized after Tuesday’s large sell-off. “The shutdown will lead to some delays in government spending, which will lead to a postponement in tapering as the Fed wants to see more signs of growth,” Scott Carter, chief executive officer of Lear Capital, said. “Also, today’s ADP numbers showed that the employment scenario still remains weak.” With a plethora of factors lined up in support of Precious Metals prices, time will tell if political and economic indicators will be foreboding enough to swing investor sentiment away from riskier investments and help Gold break out of its current bearish trend.
The U.S. government closure coupled with weak private jobs numbers to drive stocks down on Wednesday. “People thought there would be a deal struck in fairly short order and that is obviously not occurring,” Matthew Kaufler, a portfolio manager at Federated Investors Inc., said. “You not only have the current impasse, but you have the debt ceiling issue that is looming as well. In the short term, we are in for a choppy market.” With no meetings scheduled between the White House and Congress, it appears that budget talks could couple with gridlock over the debt ceiling, leaving markets exposed to potential volatility.
At 1:12 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,317.80, Up $29.70.
- Silver, $21.80, Up $0.60.
- Platinum, $1,391.40, Up $7.50.
- Palladium, $721.20, Up $2.30.
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