Mid-Day Gold & Silver Market Report – 12/10/2013
ECB SPECULATION PROVIDES BOOST TO PRECIOUS METALS
Precious Metals prices are continuing to trade high through midday trading. With the Federal Reserve’s two-day meeting set to begin next Tuesday, many investors are beginning to look towards 2014. “We feel that in 2014, the Fed is likely to have to walk a fine line between fast tapering — likely causing pockets of economic and financial market weakness — and slower tapering — likely contributing towards bubbles. Overall, we think the Fed, along with other central banks, will be forced to maintain a high level of bond buying in 2014,” Deutsche Bank's Jim Reid and Anthony Ip said. This could potentially provide a boost to Gold’s safe haven appeal.
The Euro climbed to a six-week high against the dollar on Tuesday. Growing speculation that the U.S. Federal Reserve will need additional positive economic data before it begins to reduce quantitative easing and expectations that a European Central Bank deal could be completed before this years end; helped boost the Euro. Andres Bergero, chief corporate trader at Bank of the West, said “We're going to see a breakout in the euro soon…The euro zone economy is still fairly fragile, but there aren't as many fires as before. So there is a perceived notion that things are little bit better, a little more stable in Europe.” Gold has historically had a positive correlation with the Euro, so the current news could be viewed as beneficial for Gold in the future.
At 12:55 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,264.80, Up $28.20.
- Silver, $20.41, Up $0.66.
- Platinum, $1,390.00, Up $19.50.
- Palladium, $737.60, Up $2.60.
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