Closing Gold & Silver Market Reports – 10/8/2013
GOLD, STOCKS DOWN AS SHUTDOWN CONTINUES
Though many investors remain sidelined while budget negotiations continue at a stalemate, the Gold price fell for the third time in four sessions following a modest rise in the U.S. dollar. The current impasse in Washington has forced investors away from taking new positions as futures trading was down 27 percent from the 100-day moving average on Tuesday. Analysts and investors expect the perpetuation of the current political gridlock as a positive for Precious Metals in the short-term.
Today’s sharp tumble for U.S. stocks has brought major equities indexes to their lowest levels in one month. Tuesday’s decline is the 11th drop in the last 14 trading sessions. The dip was initiated after President Barack Obama indicated that a solution to budget negotiations is not yet imminent. "Investors seem to be adding a bit of risk premium in the market because you don't know how this is going to play out – you could actually see the government default," Paul Zemsky, CIO of multi-asset strategies at ING U.S. Investment Management, said. "And investors also seem to be adjusting to what the true economic impact will be from the shutdown – it could be anywhere between 0.2 percent and 0.4 percent on GDP per month."
At 4 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,321.10, Down $6.00.
- Silver, $22.35, Down $0.07.
- Platinum, $1,401.80, Up $0.90.
- Palladium, $714.00, Up $7.70.
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