Mid-Day Gold & Silver Market Report – 10/7/2013
BUDGET STALEMATE BOOSTING GOLD, DEPRESSING STOCKS
The Gold price is up for the first time in three sessions as the U.S. budget stalemate enters a second week. Prolonged negotiations are beginning to weigh on investors as the fear that failure to reach a budget agreement could lead to a U.S. government default. “In such a climate Gold will be attractive as a ‘safe haven’ globally,” GoldForecaster.com’s Peter Spina and Julian Phillips said. “We can see little to no good reason why the Gold price should fall. We can see every good reason why it should rise.” With political turmoil in Washington driving safe haven appeal and technical support levels holding Gold above the important level of $1,300 per ounce on Friday, short-term momentum for the yellow metal remains positive.
U.S. stocks are down again Monday following a back-to-back weekly decline in the S&P 500. “Every day that passes makes the potential for a policy mistake to be that much greater,” Thrivent Asset Management director of research Darren Bagwell said. “One of the ironies of the market holding in as well as it has is that it has not exerted the type of pressure on Washington like we got a couple years ago.” With policymakers deadlocked, the lack of key economic reports weighs on the U.S. Federal Reserve’s ability to make an educated decision regarding the future of quantitative easing.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,326.50, Up $14.60.
- Silver, $22.38, Up $0.60.
- Platinum, $1,402.40, Up $15.40.
- Palladium, $706.00, Up $3.60.
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