Closing Gold & Silver Market Report – 1/8/2014
PRECIOUS METALS, U.S. STOCKS DIP ON POSITIVE ECONOMIC DATA, FED MINUTES
Precious Metals fell slightly throughout the day due to the private sector reporting a better than expected increase for jobs in December. Also, the minutes from the Federal Reserve’s December Federal Open Market Committee meeting were released today. The minutes showed a consensus amongst participants who believe it was time to taper fiscal policy as the program’s benefits appear to have diminished over time. “Overall there is nothing in the minutes to change our view, based on Fed Chairman Ben Bernanke’s comments in the post-meeting press conference, that the Fed will continue to reduce its purchases at a pace of $10 billion at each meeting this year,” Capital Economics chief U.S. economist Paul Ashworth said.
The S&P 500 dropped following the release of the Fed minutes. The Fed’s bond buying program boosted the S&P 500 by nearly 30 percent in 2013, but with tapering in 2014, the market could see a reverse reaction. “The financial markets really didn't move at all, but typically history would suggest they need a little bit of time to just digest these things,” Darrell Cronk, regional chief investment officer of Wells Fargo Private Bank, said.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,227.50, Down $4.60.
- Silver, $19.56, Down $0.28.
- Platinum, $1,419.60, Up $2.20.
- Palladium, $736.50, Down $5.20.