Mid-Day Gold & Silver Market Report – 8/16/2013
GOLD SET FOR BEST WEEK IN A MONTH
Precious Metals prices continued their slow climb through mid-day trading. A report showing U.S. consumers are not as optimistic about the economy as forecasted has prompted investors to turn to alternative investments. Saxo Bank general manager Ole Hansen explained, “Investors are so concentrated on the whole talk about tapering that any disappointing U.S. data can bolster prices. People are pricing in the fact that the Fed will keep interest rates low for quite a long time and that's positive for Gold.” Historically, an environment supportive of low interest rates pushes investors toward non-interest bearing assets like Precious Metals.
The U.S. dollar rallied today against foreign currencies like the euro and yen. However, many traders and investors are concerned the economy is not strong enough for the Federal Reserve to begin tapering its quantitative easing program. Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington, said, “Yesterday's data spooked investors into concern about a wholesale abandonment of U.S. assets. If Treasury prices continue to fall, potential tapering may not be as broadly positive for the dollar as first thought.”
At 1:12 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,368.70, Up $5.80.
- Silver, $23.33, Up $0.32.
- Platinum, $1,528.50, Down $4.80.
- Palladium, $764.60, Up $6.30.
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