Morning Gold & Silver Market Report – 12/10/2013
GOLD, SILVER RETAKE KEY LEVELS
Gold and Silver rebound to $1,250 per ounce and $20.00 per ounce, respectively, in overnight trading. The recent price movements appear to be defiant towards Federal Reserve officials’ comments and other signs that the Fed’s bond-buying will be slowed this month. IG analyst Shaun Murison said, “The market has perhaps become accustomed to the idea [of the taper] in the near-term and priced in what it deems to be fair for now.” A small December taper is the best move for the central bank, according to St. Louis Fed President James Bullard.
CNBC Senior Economics Reporter, Steve Liesman, gave three main reasons the Fed is likely to begin tapering this month. While not all of the Federal Reserve’s goals have been achieved, Liesman notes three tests that have nearly been met. Confidence in the economic outlook is better, according to Liesman, who noted that jobs reports have been encouraging over the past several months. He also believes the U.S. is at an end of fiscal uncertainty, citing reports that congressional Democrats and Republicans are close to striking a budget deal. One ‘gray area’ for Liesman is interest rates. He notes that the 10-year benchmark Treasury bond is still about where it was in September, but he believes other circumstances have changed enough to overlook this.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,263.90, Up $27.20.
- Silver, $20.41, Up $0.66.
- Platinum, $1,394.70, Up $24.20.
- Palladium, $742.30, Up $7.30.
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