Mid-Day Gold & Silver Market Report – 1/30/2014
GOLD ERASES GAINS AS HIGHER STOCKS SUPRESS DEMAND
Gold has given back yesterday’s gains as higher equities and a stronger U.S. dollar pushed investors away from the yellow metal. News that the Federal Reserve will continue tightening its quantitative easing package has sunk in, causing a reversal of initial gains realized after yesterday’s Fed summit. “Initially, Precious Metals showed a somewhat positive reaction to the news with Gold rallying to a high of $1,270 [per ounce] overnight, but it has dropped quite sharply from there,” FOREX.com technical analyst Fawad Razaqzada said. As inflationary fear caused by the ultra-loose stimulus program subsides, Gold will need fresh motivating factors to break free from its current trading range.
As we near the halfway point of corporate earnings season, upbeat data has pushed U.S. stocks higher today. As fears continue to swell concerning an impending market correction, strong earnings and continued economic growth will do much to quell some of the panic. “The fact we can print a quarter in which GDP growth was more than 3 percent, even though government spending contracted as much as it did, is unquestionably a positive,” Dan Greenhaus, chief global strategist at BTIG LLC, said. “The concerns over emerging markets are the dominant topic. To the extent this remains contained, the sell-off is likely to be limited.”
At 1:00 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,245.70, Down $18.50.
- Silver, $19.23, Down $0.38.
- Platinum, $1,385.60, Down $24.50.
- Palladium, $707.70, Down $4.50.
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