Morning Gold & Silver Market Report – 9/28/2011
U.S. Durable-Goods Orders Drop in August – The August durable goods report just came out and the number of orders dipped by 0.1%, when it had been expected to rise by 0.4%. Orders placed for motor vehicles dropped by 8.5%. Platinum and palladium are highly used in the automobile industry, so this slowdown in motor vehicle bookings might have been a contributing factor to recent price declines in those metals. Stock futures relinquished some of their earlier gains on the news of this report.
Precious metals prices have been relatively stable in overnight trading. There seems to be a time-out in effect, while traders digest the wild swings of late. Of note, despite the large drop in gold last week, redemptions from Gold ETFs have been light. It is also expected that these price drops will fuel increased emerging-market buying. It should be remembered that according to the World Gold Council, India and China are now buying 52% of the world’s gold supply. Eugen Weinberg, head of the commodity research department at Commerzbank said in a note, “In India especially, where the festival season is about to begin, demand is reported to be high and some local traders are already speaking of supply bottlenecks.”
At 8AM (CT) precious metals prices were:
· Gold price - $1,655.70 – up $1.70
· Silver price - $31.62 – up 6 cents
· Platinum price - $1,560.60 – down $16.40
· Palladium price - $649.30 – down $2.70