Morning Gold & Silver Market Report – 11/7/2013
DATA BOOSTS DOLLAR, PRESSURES GOLD
A flurry of economic news caused the U.S. dollar to strengthen against the euro, in turn causing Precious Metals prices to fall. The fact that new jobless claims fell less than expected wasn’t enough to offset other news, even though the level of claims is still higher than end-of-summer levels, which suggests a weakening labor market. The U.S. gross domestic product rose by 2.8 percent in the third quarter, which is the biggest increase in 18 months. The dollar’s largest boost, however, came from the eurozone. The European Central Bank announced that it would cut its interest rate to a record low 0.25 percent, a move which brought the euro down against the dollar.
Some analysts are suggesting that tomorrow’s U.S. nonfarm payrolls report will be a major factor in the Gold price’s movement. Credit Suisse analyst Karim Cherif said. “A negative footprint would re-launch a discussion on when Fed tapering will start.” Saxo Bank’s Ole Hansen pointed out that quantitative easing measures across the world appear to be more important to the Gold price than the dollar’s strength. He said, “We now have easing bias in all of the three major centers (Japan, Europe and the United States) and that could further delay any talk of tapering in the U.S., hence the support for Gold.”
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,304.90, Down $14.90.
- Silver, $21.57, Down $0.25.
- Platinum, $1,455.70, Down $12.70.
- Palladium, $756.80, Down $8.60.
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