Mid-Day Gold & Silver Market Report – 10/8/2013
MARKETS EYE GOVERNMENT FOR DIRECTION
Precious Metals continue to trade flat through mid-day trading. As the U.S. government shutdown continues into week two with no agreement in sight, many investors are beginning to take notice. Commerzbank analysts said in a note, “As there is still no sign of the dispute being resolved, market players will remain unsettled and interest in Gold as a safe haven and crisis currency should increase. Moreover, the [Federal Reserve] will probably postpone its retreat from quantitative easing, which could also help to push prices up.”
The global outlook on the U.S. economy and debt ceiling continues to be a concern. With the U.S. economy driving an overall global recovery, international financial managers are beginning to consider the effects of a potential default. On Tuesday, the International Monetary Fund warned, “A failure to promptly raise the debt ceiling, leading to a U.S. selective default, could seriously damage the global economy. Policymakers have shown their determination to keep the global economy away from the precipice. Aside from new cliff events, a growing worry is a prolonged period of sluggish global growth.”
At 2:34 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,324.00, Down $3.10.
- Silver, $22.41, Down $0.01.
- Platinum, $1,402.90, Up $2.00.
- Palladium, $714.80, Up $8.40.