Morning Gold & Silver Market Report – 1/31/2014
GOLD SHOWING NEGATIVE CORRELATION TO STOCKS
The Gold price is higher in early-morning trading as major stock indices fall, though the yellow metal is slated for its first weekly fall in six weeks. Quantitative Commodity Research owner Peter Fertig explained some of the movement, saying, “You have strength of the dollar against emerging markets currencies, and that's negative for Gold. But what is also important is the negative correlation between stock markets, especially the U.S. ones, and Gold and the weakness in emerging markets. Fears that it may lead to widespread crisis are currently sending shivers through the stock markets.”
While Gold is up nearly four percent in January, U.S. stocks are down four percent. This has some worried, as the January performance of stock markets has been an accurate foreshadowing of the rest of the year 62 of the last 85 years. Volatility is being measured up 26 percent this month, and on two occasions in the past, a number that high has been followed by the S&P 500 dropping five percent or more on the year.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,253.10, Up $8.60.
- Silver, $19.41, Up $0.23.
- Platinum, $1,384.90, Up $0.60.
- Palladium, $706.80, Down $1.10.
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