Morning Gold & Silver Market Report – 10/14/2013
GOLD RISES IN MORNING TRADING; DOLLAR DOWNGRADED AGAIN
With political leaders in the U.S. failing to reach a deal on the government shutdown and upcoming debt ceiling issue, Gold has seen a sharp increase in this morning’s trading. The divide between Senate Democrats and Republicans continues to widen, with Democrats unwilling to agree to any deal that continues the automatic spending cuts known as sequestration. CMC Markets UK senior sales trader Toby Morris said, “Even with ‘constructive discussions’ on Sunday, no details have really been given about what that entails, leaving markets as confused as ever about what we are waiting for.” Silver, Platinum and Palladium prices are up this morning as well.
Economic strategists are cutting U.S. dollar forecasts for the third month in a row in response to the budget fight in the U.S. Westpac Banking Corp and Credit Suisse Group AG, among other firms, have reduced estimates by an average of 1.2 percent as compared to currencies such as the euro, pound and yen. According to Andrew Milligan, head of global strategy at Standard Life Investments Ltd., faith in the dollar is being eroded by these repeated episodes of U.S. government dysfunction. “Lasting damage is being caused to the view that the U.S. currency is the reserve currency. It encourages people not to hold so much in dollars and to hold slightly more in other currencies,” Milligan said. Historically, the value of Gold and other Precious Metals have shown a negative correlation to the value of the dollar.
At 9:23 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,285.90, Up $15.70.
- Silver, $21.56, Up $0.27.
- Platinum, $1,383.70, Up $9.10.
- Palladium, $717.10, Up $2.80.
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