Closing Gold & Silver Market Report – 10/7/2013
GOLD RISES ON WANING GOVERNMENT CONFIDENCE; CHINA SHARES CONCERN
Today Gold began to react toward the government shutdown as it rose 1 percent on uncertainty that U.S. lawmakers will be able to reach an agreement. Congress has until October 17 to raise the debt limit and at this point it appears they may wait until the final moments to decide. “The longer the shutdown, the longer the issue of debt ceiling crisis, Gold will likely be increasingly supported,” CPM Group director of commodities and asset management Carlos Sanchez said. In 2011, government officials were forced to handle the same type of situation and raised the debt limit only at the last minute, which pushed Gold to an all-time high of $1,920 an ounce.
The U.S. government shutdown has now extended to a full week and is affecting jobs, income and investments. The Chinese government proclaimed to the U.S. that the “clock is ticking” and urged Washington politicians to “ensure the safety of the Chinese investments.” Vice Finance Minister Zhu Guangyao said, “The U.S. has a large amount of direct investment in China and China has a vast number of U.S. Treasury bonds … The U.S. is clearly aware of China's concerns about the financial stalemate [in Washington] and China's request for the U.S. to ensure the safety of Chinese investments.”
At 5:03 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,324.90, Up $13.00.
- Silver, $22.40, Up $0.62.
- Platinum, $1,401.10, Up $14.10.
- Palladium, $704.70, Up $1.80.
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