Morning Gold & Silver Market Report – 1/23/2014
GOLD PRODUCTION TO BE CUT IN 2014
The Gold price overturned yesterday’s losses as a weaker U.S. dollar and a flat jobless claims report indicated economic growth is not as robust as predicted. Federal Reserve policymakers look to employment numbers as an overall gauge of domestic economic growth and use the data to determine the future of their quantitative easing (QE) program. This week’s downward revision of jobless claims projections marks the second week in a row that employment expectations were altered. As next week’s Federal Open Market Committee meeting approaches, jobs data will remain central to Fed officials’ decision to perpetuate QE or not.
As U.S. investors look to employment numbers, stock momentum and the Federal Reserve to gain insight into the future of Precious Metals prices, last year’s price drop has affected production of physical Gold. “The miners were mining at the highest possible cost because the Gold price was going up and when it stopped going up, they had to reduce that. So that means that they will mine less Gold,” Peter Hambro, chairman of Russian Gold mining company Petropavlovsk, said. With smaller scale mining operations closing up shop, larger firms like Petropavlovsk are cutting production back significantly this year. The diminished supply of physical Gold prompted Reuters to predict the yellow metal would be unable to slip much below current levels.
At 9:45 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,258.20, Up $17.20.
- Silver, $20.22, Up $0.33.
- Platinum, $1,463.60, Down $0.80.
- Palladium, $745.90, Down $3.00.
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