Mid-Day Gold & Silver Market Report – 10/23/2013
GOLD DOWN SLIGHTLY AFTER REACHING FIVE-WEEK HIGH
Following a rally that pushed Gold to a five-week high on Tuesday, profit-taking has forced the yellow metal lower today. During a year that has seen Gold enter short-term bearish territory, some analysts have a positive outlook going forward as the metal is set to realize its first year of losses in more than a decade. Adam Koos, president of Libertas Wealth Management Group likes Gold’s prospects if it can stay above the critical technical level of $1,250 an ounce. He added that Gold’s “longer-term intermediate bearish trend was just broken and we’re looking at a positive trend for the first time this year.” With the nomination of Janet Yellen to Federal Reserve Bank chairman, investors and analysts will await indication of her agenda regarding the future of quantitative easing (QE). Most analysts are predicting the announcement of a QE to be delayed until at least mid-2014. Historically, the ultra-loose monetary policy has been a strong catalyst for higher Precious Metal prices.
As corporate earnings forecasts continue to trickle in, stocks are down for the first time in five sessions due to lackluster projections from major S&P 500 companies. Earnings reports for corporate America are always a strong gauge of the status of the U.S economy. “The market has run quite a bit,” Edward Painvin, chief investment officer of Chase Investment Counsel Corp., said. “Every time you have that kind of move going into earnings season, expectations are high. The market is going to be placing an increasing amount of emphasis on companies delivering expectations and providing some clarity for 2014.” A robust economy will inspire confidence in investors and prove that equities markets can rely on traditional fundamentals without the help of QE.
At 1:24 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,337.00, Down $7.60.
- Silver, $22.66, Down $0.17.
- Platinum, $1,440.40, Down $11.30.
- Palladium, $749.20, Down $4.70.
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