Mid-Day Gold & Silver Market Report – 10/3/2013
GOLD PARES EARLY LOSSES; STOCKS DIVE ON GOVERNMENT CLOSURE, POOR ECONOMIC DATA
Gold and Silver prices are down slightly today as expectations for an end to the U.S. government closure appear to be fairly distant. While current political and economic factors would traditionally be bullish for Gold, investors and traders remain focused on the underperformance of the yellow metal during 2013. “If the U.S. government closure moves into next week, Gold will rise,” Chintan Karnani, chief analyst at Insignia Consultants, said. “Since Gold is below the 100-day moving average of $1,353, the overall trend is bearish to range-bound between $1,270 and $1,356.” Even as Gold rebounded from early morning lows on the heels of poor manufacturing numbers, the primary motivator of investor sentiment, and ultimately the price of Gold, is the future of the Federal Reserve’s quantitative easing program.
U.S. stocks have taken a fairly dramatic dip mid-way through today’s trading session as service industry reports showed weak growth and gridlock in Washington perpetuates the government shutdown. “What we are starting to realize today especially is that this might go on for a while,” Mike Sorrentino, chief strategist at Global Financial Private Capital LLC, said. “The debt ceiling is a cause for concern. If we can get through that and we can get through the dysfunction with this government, there will be a much safer road ahead.” Many will wait to see if a solution to the budget issue can be resolved before the government closure extends into a second week.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,320.80, Down $1.90.
- Silver, $21.81, Down $0.12.
- Platinum, $1,368.10, Down $23.80.
- Palladium, $701.00, Down $20.30.
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