Closing Gold & Silver Market Report – 10/21/2013
GOLD AWAITS FED’S NEXT MOVE; HOUSING MARKET RECOVERY LOSING GROUND
Gold remained flat on Monday as investors are still unsure of the Federal Reserve’s next move regarding fiscal policy. The yellow metal jumped nearly four percent last week with assumptions that the Fed will not taper its $85 billion monthly bond-buying program especially after the recent government shutdown, which has hurt economic growth expectations. “At some point the Fed will have to start tapering, there is also a consensus view that over three, four, five years bond yields will most likely be higher, and right now inflation rates are very low and show no sign of picking up,” Credit Suisse analyst Tobias Merath said. “These are the factors you will look at, if you ask yourself whether there is a need to buy Gold right now.” The Fed has already announced they will not cut back monetary policy unless the job and housing market show improvement; both have been fragile since 2008.
The housing market is showing some weaker than expected data as the National Association of Realtors reported today that U.S. home resale’s fell 1.9 percent for the month of September. The drop is thought to be caused by higher mortgage rates along with consumers in the market place whose salaries are barely rising. Investors believe recent higher borrowing costs are slowing the housing market recovery.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,317.70, Up $1.10.
- Silver, $22.27, Up $0.32.
- Platinum, $1,433.80, Down $5.00.
- Palladium, $751.00, Up $9.30.
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