Morning Gold & Silver Market Report – 10/13/2011
CHINA DATA ADDS TO GLOBAL ECONOMIC WOES
Precious metals have traded mostly lower since yesterday’s close, and stock futures are joining them in the red after the release of economic data from China that was weaker than expected. China’s trade surplus contracted in September, with lower-than-expected imports and exports. This is yet another sign of global economic weakness.
In the U.S., the jobless claims report was released and was relatively unchanged, showing a drop of only 1,000 to 404,000 after an upward revision from two weeks ago. To keep things in perspective, 300,000 claims is a target number for rapid economic growth. This falls in line with other data that shows that the U.S. is adding jobs, albeit at a frustratingly slow pace.
A European Central Bank (ECB) Governing Council member said that the ECB will consider cutting interest rates at its next meeting, but that they are not pre-committed to actually making the cut. There are also inflationary concerns coming out of the euro zone, though most policymakers are shrugging it off. The current inflation rate is 3%. Slovakia’s central bank chief Jozef Makuch said, “I expect inflation to drop below 2% next year.”
At 8:00 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,669.40 – Down $15.20.
- Silver - $32.12 – Down $0.71.
- Platinum - $1,538.00 – Down $16.40.
- Palladium - $605.50 – Down $7.60.