Mid-Day Gold & Silver Market Report – 2/7/2014
PRECIOUS METALS CONTINUE TO RISE ON JOBS DATA
Precious Metal prices have continued their rally and are still trading slightly higher through mid-day trading. As investors digest the release of January’s disappointing labor data, economists are beginning to wonder at what point Gold will break through its perceived resistance point. Jan Skoyles, head of research at The Real Asset Co., said, “Gold hasn’t been able to hold above $1,270 [per ounce] and that’s likely disappointed some investors.” She went on to say the Gold price “is more affected by the overall picture — i.e. Fed tapering, emerging-economy shocks, equity movements etc.”
The U.S. dollar dropped Friday in the wake of January’s U.S. non-farm payrolls report. When speaking about investor reaction to the report and the dollar, Citi currency strategist Richard Cochinos said, “The headline number clearly surprised to the downside. It certainly is a positive for bonds and yields are lower and that's a negative for the dollar.” This could potentially be viewed as positive for Gold, which historically has had an inverse relationship with the dollar, as demonstrated in today’s price increase.
At 1:39p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,256.50, Up $6.30.
- Silver, $20.02, Up $0.04.
- Platinum, $1,382.60, Up $5.70.
- Palladium, $710.80, Up $0.60.