Morning Gold & Silver Market Report – 1/2/2014
GOLD LOOKS TO CONTINUE MOMENTUM IN 2014
Gold has risen slightly on Friday following Thursday’s strong rally. Lower equities, physical demand from China, and bargain hunting are the central motivators of the metal’s price hike. “The attempted sell-off (on Tuesday) through the $1,184 level...didn't really trigger any follow-through selling (and) gave some potential buyers the confidence to move back in," Ole Hansen, head of commodity strategy at Saxo Bank, said. Gold has remained in a relatively tight trading range since last month’s decline following the announcement of an initial Fed stimulus taper. "Positive bullion prices in reaction to the decline in equities may set the tone for 2014 and reinforce the negative correlation between the two," HSBC analysts said.
U.S. stocks are trading higher this morning following yesterday’s weak performance as investors await a speech from Federal Reserve Chairman Ben Bernanke regarding the strength of the U.S. economy. “The comments are likely to be quite upbeat overall given that the Fed’s tapering process is already underway,” Michael Every, head of financial-markets research for Asia-Pacific at Rabobank International in Hong Kong, said. The reduction of quantitative easing has had little impact on stocks. As Bernanke prepares to exit his role as Fed chairman, investors will look to his replacement, Janet Yellen for insight into monetary policy initiatives.
At 10:13 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,235.30, Up $7.60.
- Silver, $20.19, Up $0.01.
- Platinum, $1,412.10, Up $5.50.
- Palladium, $728.60, Down $1.60.
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