Mid-Day Gold & Silver Market Report – 10/28/2013
STOCKS RALLY; WHY INFLATION IS GOOD FOR ECONOMY, GOLD
The Gold price remained flat in morning trading, while stocks continued to trade in a narrow range. The Dow Jones Industrial Average and S&P 500 are coming off three straight weeks of gains in a record rally. With the two-day Federal Reserve policy meeting later this week, Michael Sheldon of RDM Financial Group said, “Investors are waiting for more in terms of earnings and economic reports. The tone of the market overall remains positive, but the rate of gains may slow down from the rate we've seen over the past several weeks.”
Historically, inflation has been bullish for the Gold price. As the value of the U.S. dollar falls, the price of Gold typically rises. The New York Times’ Binyamin Appelbaum recently focused on the changing viewpoint that inflation could be good for the economy. Appelbaum pointed out that even members of the Fed, including current Fed President Ben Bernanke’s successor, Janet Yellen, “have long argued that a little inflation is particularly valuable when the economy is weak.” Harvard economist Kenneth S. Rogoff recently wrote, “Weighed against the political, social and economic risks of continued slow growth after a once-in-a-century financial crisis, a sustained burst of moderate inflation is not something to worry about. It should be embraced.”
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,355.20, Up $0.70.
- Silver, $22.59, Down $0.10.
- Platinum, $1,473.50, Up $16.90.
- Palladium, $751.00, Up $2.10.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.