Mid-Day Gold & Silver Market Report – 8/29/2013
EASING TENSION IN SYRIA, STRONG ECONOMIC REPORTS SUBDUE GOLD PRICE
Uplifting economic reports helped buoy the U.S. dollar and equities markets today as the fear of a military clash with Syria has been temporarily quelled, lending further support to stocks. New reports show domestic growth was better than expected during the second quarter and unemployment claims are down this week. Further evidence of economic improvement will continue to stoke speculation surrounding the U.S. Federal Reserve’s decision to either taper or perpetuate the current course of monthly asset purchases. Today, markets are focused on the possibility of Western conflict with Syria. “There's a lot of uncertainty as Western powers have taken a step back, so the market is encouraged of some stepping back from the brink,” OakBrook Investments co-chief investment officer Peter Jankovskis said.
The Gold price is suffering losses today as safe-haven appeal was reduced following a delay in Syrian conflict and the release of positive economic news. “The GDP numbers are very big, and puts the story of tapering in September back in the forefront,” Chris Gaffney, senior market Strategist at EverBank Wealth Management, said. “The drumming of the Syria war has receded today, taking some premium away from Gold.” With tapering discussions reclaiming the central focus of investors, all eyes will look to September’s Federal Open Market Committee meeting, which has been highly publicized as the likely venue for the Fed to announce scaling back its quantitative easing program.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,413.80, Down $7.00.
- Silver, $24.05, Down $0.41.
- Platinum, $1,528.80, Down $12.30.
- Palladium, $739.60, Down $8.00.