Closing Gold & Silver Market Report – 12/10/2013
WEAK DOLLAR BOOSTS GOLD
The U.S. dollar fell today, propping up Precious Metals and causing Gold to realize its largest single-session bump in almost two months. “The dollar has weakened, so that is helping Gold,” TD Securities head of commodity strategy Bart Melek said. “We had seen some aggressive short positions being taken. Some of that is being taken off as many people feel that Gold isn’t dropping into the precipice. It’s no longer a one-way bet.” With an onslaught of selling over the last two weeks on fears of an imminent U.S. Federal Reserve taper, Gold had experienced a decline that brought the metal down to its lowest level in five months last week. The price drop has since caused a fresh round of bargain buying, both physical and electronically.
U.S. stocks have fallen today as equities investors continue to eye budget negotiations in Washington and positive economic data which point to an impending Fed stimulus taper. “In front of the prospect of a budget deal and the Fed’s meeting next week, there’s a little bit of nervousness,” Dan Greenhaus, chief global strategist with BTIG LLC, said. “You’re inclined to trade sideways and I think that’s what’s happening. We had a very strong day on Friday, so some digestion of a more than 1 percent move up is not out of the question.” Jobs data, the outcome of U.S. budget negotiations and overall domestic macroeconomic data will continue to remain the focus of stock and Precious Metals investors in the short-term.
At 5:24 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,263.20, Up $26.50.
- Silver, $20.43, Up $0.68.
- Platinum, $1,389.80, Up $19.30.
- Palladium, $739.10, Up $4.10.
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