Morning Gold & Silver Market Report – 1/7/2014
GOLD TO GET BOOST FROM HEDGE FUNDS
Precious Metals are trading slightly lower in early-morning trading as traders look forward to minutes from the Federal Reserve’s December policy meeting due Wednesday and jobs reports due later in the week. Some analysts are predicting short-term gains for Gold as hedge fund managers look to rebalance portfolios early in the year, though that particular support could be short-lived. Bank of America Merrill Lynch analyst Michael Widmer said, “The index rebalancing may keep having an impact in the next few sessions but by mid-January that impact should be gone.”
Deflation is a key concern for the eurozone. While some might welcome lower costs of goods and services, deflation typically marks a decrease in demand and leads to an increase in the unemployment rate. The latest inflation numbers from the eurozone showed consumer prices rising by 0.8 percent in December, down from 0.9 percent in November. The European Central Bank’s target for inflation is just below 2.0 percent. In Germany, the eurozone’s strongest economic power, jobless claims rose each month from August 2013 to November 2013.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,236.50, Down $4.00.
- Silver, $19.99, Down $0.17.
- Platinum, $1,416.50, Down $1.90.
- Palladium, $737.20, Down $1.30.