Morning Gold & Silver Market Report – 11/1/2013
DOLLAR BOOSTED BY EUROZONE INFLATION
The Gold price’s negative correlation to the U.S. dollar has held up since the Federal Reserve statement earlier this week. Gold and Silver prices are lower in morning trading as news in the U.S. and the eurozone continue to boost the dollar. Commerzbank analyst Daniel Briesemann said, “The weakness we have been seeing in Gold in the past two days is due to the after-effects of the [Federal Open Market Committee] statement and also the extremely low inflation rate in the eurozone. These factors are very supportive of the dollar, which in turn weighed on precious metals prices.”
U.S. stock futures are pointing toward a higher open for Wall Street this morning after Chinese manufacturing data came in at a positive level for the second month in a row. China’s official purchasing managers index, which rose from 51.1 in September to 51.4, is an important gauge of the global economy. Frederic Neumann of HSBC said, “The broad message here is that China's economy is still holding up. It's not exactly red hot but it's good enough for the time being. The third quarter may have been the peak [for growth], we're going to go sideways into the fourth quarter.”
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,316.60, Down $9.20.
- Silver, $21.96, Up $0.04.
- Platinum, $1,457.10, Up $7.70.
- Palladium, $738.60, Up $0.60.
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