Mid-Day Gold & Silver Market Report – 10/16/2013
INVESTORS AWAIT POSSIBLE BUDGET DEAL TODAY
Gold is trading relatively even Wednesday as investors await a possible U.S. debt ceiling resolution. “We have heard a couple of times that they were close to [reaching] an agreement but they haven't... nonetheless, investors have been generally positive on a solution happening,” Natixis analyst Bernard Dahdah said. If a solution is not reached by Thursday, the U.S. government is expected to default on its debt obligations. The potential for default has some analysts and investors pondering the notion of the U.S. receiving a credit downgrade, which could be a positive motivator for Precious Metals prices.
As Gold remains relatively unchanged at midday, equities indexes have rallied on expectations of a budget resolution. The Dow Jones Industrial Average rallied more than 200 points as rumors about a last-minute default solution circulate. “The brinksmanship in Washington is disappointing and annoying, but everyone believes we're going to come to a deal so that's good news for the market,” ING U.S. Investment Management market strategist Karyn Cavanaugh said. “We're trading closer to all-time high levels, but earnings are also at all-time highs…there's still value in the market and while DC is creating a headwind for a lot of companies, we will continue to see earnings growth.”
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,279.70, Up $4.40.
- Silver, $21.40, Up $0.18.
- Platinum, $1,395.00, Up $12.60.
- Palladium, $714.50, Up $7.20.
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