Closing Gold & Silver Market Report – 2/10/2014
WEAKER U.S. DOLLAR SUPPORTS METAL PRICES; DECLINING ECONOMIC GROWTH EXPECTED IN 2017
Both Gold and Silver have performed extremely well today due to a weaker U.S. dollar, which hit a three-week low against other major currencies. Gold has already increased by six percent this year compared to a 70 percent climb from December 2008 to June 2011 when the Federal Reserve printed more than $2 trillion and pushed it into the financial system. As the Fed’s monetary policy slowly winds down with moderate tapering, it appears that Gold’s support system is moving further away. “The safe-haven premium is back with growth concerns re-emerging,” Bart Melek, analyst at TD Securities in Toronto, said. “Tomorrow, people will be watching Yellen’s determination to continue with tapering.”
After a second disappointing jobs report was released, it left many wondering if the U.S. economy is really showing signs of improvement. The Congressional Budget Office has forecasted that growth will continue through 2016 and will begin to decline at the start of 2017. The reasoning behind such prediction is that a large number of baby boomers will retire and leave the workforce, which will hinder the economy’s ability to grow. This could put the government in a position to borrow money in order to accurately fund Social Security and Medicare for those who retire.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,276.70, Up $11.80.
- Silver, $20.12, Up $0.12.
- Platinum, $1,388.40, Up $7.20.
- Palladium, $718.50, Up $8.80.
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