Closing Gold & Silver Market Report – 8/29/2013
GOLD DOWN, STOCKS UP ON VERY LOW VOLUME
The diminished threat of military engagement in Syria combined with a stronger U.S. dollar to push the Gold price down for a second straight session Thursday. With the Syrian situation on hold, jobless claims seeing six-year lows and GDP rising to a 2.5 percent annual rate were today’s central economic factors weighing on investor sentiment regarding the Federal Reserve’s intentions for the future of quantitative easing. “It is likely, in our view, that a potential airstrike against Syria would be short-lived, with the Gold market turning its attention back to the [Federal Reserve policy] meeting on Sept. 17-18 ... and the release of the U.S. August nonfarm payrolls report next Friday,” Andrey Kryuchenkov, analyst at VTB Capital, said. Gold has recently flirted with reentering bullish territory as it breached $1,400 an ounce, up from its late June low of $1,180 per ounce. The yellow metal’s year-to-date losses have come on the heels of improvement in key sectors of the economy and the anticipation that the Fed would begin scaling back its level of asset purchases.
U.S. equities benefited moderately from today’s economic reports, sending both the Dow Jones Industrial Average and S&P 500 higher for the second day in a row. “That’s just one confirmation that the data is continuing to move in the right direction,” Anastasia Amoroso, global market strategist at J.P. Morgan Funds, said. “That gives more evidence why the Fed should ultimately taper. But over the last couple of months the markets have been a lot more comfortable with that notion.” Headed into the holiday weekend, S&P trading volume is down 18 percent from the 30-day average. August is set to account for the second slowest month of trading in the last five years. Investors and traders can expect ramped up volume next month as many return from seasonal vacations and individuals speculate about the outcome of the Federal Open Market Committee meeting set for mid-September.
At 5 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,409.50, Down $11.30.
- Silver, $23.95, Down $0.51.
- Platinum, $1,521.40, Down $19.70.
- Palladium, $737.80, Down $9.80.