Closing Gold & Silver Market Report – 10/16/2013
GOLD RECEIVES BOOST FROM WEAKENED U.S. DOLLAR
Gold received some much needed support today as bipartisan leaders of the U.S. Senate agreed to a solution to resolve the fiscal impasse and raise the U.S. borrowing limit. Later today the Senate and House will vote and President Barack Obama reportedly supports the agreement. “The compromise we reached will provide our economy with the stability it desperately needs,” Senate Majority Leader Harry Reid said. Since the government shut down, Gold has dropped about 4 percent due to large sells, which were intensified by technical selling.
With an official deal on the table to end the U.S. government shutdown, the U.S. dollar fell 0.2 percent against foreign currencies, which boosted Gold. “The dollar’s weakness is helping Gold,” Citigroup Inc. futures specialist Sterling Smith said in a telephone interview. “Also, higher metal and energy prices are helping.” Senate leaders were able to reach an agreement the day before the U.S. would officially default on its debt. The last minute deal may be to blame for a lower U.S. dollar, as most investors believe the damage has already been done to the economy.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,283.80, Up $8.60.
- Silver, $21.44, Up $0.22.
- Platinum, $1,398.30, Up $15.90.
- Palladium, $718.50, Up $11.20.
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