Morning Gold & Silver Market Report – 1/30/2014
ECONOMIC DATA SENDS GOLD DOWN, STOCKS UP
The negative correlation between stocks and Gold is on display in early morning trading. Economic data regarding U.S. jobless claims and fourth quarter economic growth was the catalyst for stocks reversing course into positive territory and Gold adding to losses. Jobless claims increased to 348,000, much higher than the anticipated 330,000. Fourth quarter GDP missed the mark as well, showing a figure of 3.2 percent growth instead of the expected 3.3 percent. One reason for the expectations by economists was a statement from the Federal Reserve, saying, “Growth in economic activity picked up in recent quarters.”
Gold appears to have an uphill battle ahead. The Fed announced Wednesday that the highly-accommodative quantitative easing program will be tapered by a further $10 billion per month. “There is no surprise in the fact that tapering has continued. And barring any major change in the U.S. macroeconomic situation, we are still of the view that by the end of the year we are likely to see tapering completely wound up or getting close to that, which is going to weigh on Gold in the next few months,” Mitsubishi analyst Jonathan Butler said.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,242.90, Down $21.30.
- Silver, $19.15, Down $0.46.
- Platinum, $1,390.80, Down $19.30.
- Palladium, $713.70, Up $1.60.
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