Closing Gold & Silver Market Report – 9/11/2013
ANALYSTS PREDICT GOLD’S FUTURE; ITALY’S POLITICAL WOES EXTEND
Goldman Sachs Group Inc. suggested in a report today that if a date to begin tapering the U.S. Federal Reserve’s stimulus program is set at next week’s policy meeting, Precious Metals could see a price pullback due to investor selloff. “Gold prices will decline into 2014 on the back of an acceleration in U.S. activity and a less accommodative monetary-policy stance,” Goldman Sachs analysts wrote. “The September [Federal Open Market Committee] meeting, where our economists expect a tapering of QE3, could prove the catalyst to push Gold prices lower.” The thought is once tapering occurs, the U.S. economy will appear to have stabilized and begin to show growth, which moves investors away from the safe haven appeal Gold carries.
German elections are quickly approaching as Italy is attempting to handle its own political controversy with former Prime Minister Silvio Berlusconi, convicted in August for tax fraud. Berlusconi’s political comrades threatened to destroy the already fragile government alliance if the Italian Senate makes the decision to expel him. If the Senate allows him to stay, the Italian government’s integrity will be ruined, which may be the reason for the Senate committee postponing their vote Tuesday. Italy’s rise in borrowing costs and devastating economic data more recently has been blamed on the neverending “political soap opera.”
At 1:11 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,367.50, Up $1.50.
- Silver, $23.26, Up $0.22.
- Platinum, $1,477.30, Up $2.20.
- Palladium, $692.60, Up $1.00.