Closing Gold & Silver Market Report – 10/28/2013
INVESTORS ANXIOUS AHEAD OF FED MEETING
Precious Metals prices remained flat through Monday before this week’s Federal Reserve meeting. Today, economic data was released showing a September increase in U.S. factory production of only 0.1 percent, which is lower than the 0.3 percent rise that was forecast in a Bloomberg survey of economists. The low figure suggests once again that the Fed will delay tapering until early next year as weak U.S. economic data continues to be released. “With the recent shutdown, fiscal brinkmanship and modest employment numbers, there is little reason to taper,” Barclays PLC analyst Suki Cooper wrote in a report today. “Prices lack support from the physical market for sustained gains.”
The Federal Reserve begins its two-day policy meeting Tuesday, which has the market in a frenzy over the Fed’s next financial move. Gold has been reacting heavily the past few weeks with the government shutdown and the likelihood that the Fed could stay true to its tapering statement made this past summer. “Gold is very sensitive to the U.S. data because if more and more figures confirm that tapering will be delayed, that is positive for the U.S. Treasury market and negative for yields,” Quantitative Commodity Research owner Peter Fertig said.
At 5:10 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,354.20, Down $0.30.
- Silver, $22.56, Down $0.13.
- Platinum, $1,472.10, Up $15.60.
- Palladium, $747.80, Down $1.10.
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