Closing Gold & Silver Market Report – 10/2/2013
GOVERNMENT SHUTDOWN AFFECTING U.S. DOLLAR; APMEX CEO SHARE’S BULLISH BELIEFS
Precious Metal prices received a boost today with Gold in particular rising more than 2 percent as the U.S. dollar continued to drop with economic uncertainty. "Clearly the dollar is not really playing that much of a safe-haven role through this latest episode," Vassili Serebriakov, currency strategist at BNP Paribas, said. The dollar has been suffering since Sept. 6 when the weaker than expected August jobs report was released. The Federal Reserve more than likely made their decision to announce at their policy meeting not to taper fiscal policy based on the disappointing job data. "The longer uncertainty drags out, the more of an economic impact it has and the more I think market participants will see implications for Fed policy, pushing back tapering. It should continue hurting the dollar and I think it's going to continue to grind lower,” Serebriakov said.
The government shutdown has concerned investors especially with the current devaluing of the U.S. dollar. The market is instead focused on Gold as its asset of choice as it carries safe haven appeal. Many investors saw Tuesday’s price as a “huge opportunity, especially in view of the U.S. budget crisis and the impending U.S. debt limit crisis,” Michael Haynes, chief executive officer at online Precious Metals dealer APMEX Inc., said. At this time, the market is not expecting the Federal Reserve to announce quantitative easing cut backs in Oct. as previously forecasted with the current government situation.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,318.40, Up $30.30.
- Silver, $21.76, Up $0.56.
- Platinum, $1,389.30, Up $5.50.
- Palladium, $719.00, Up $0.20.
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