Morning Gold & Silver Market Report – 9/24/2013
GOLD LOWER; THREE ISSUES BIGGER THAN QE
Lingering doubts over the longevity of the U.S. Federal Reserve’s quantitative easing (QE) program are putting pressure on Gold and Silver prices this morning. Investors are still pondering comments from St. Louis Fed President James Bullard, who said that QE tapering could happen as soon as next month. Analysts at Commerzbank believe part of the reason for Gold’s three-day decline is that investors are simply more sensitive than the foreign-exchange and bond markets. They explained, “This is evident from the fact that speculative net long positions fell by a further 10,000 contracts in the week before the last Fed meeting and Gold ETFs saw renewed outflows of 2 tons last Friday.”
David Weidner of MarketWatch gave three looming issues that are bigger for markets than QE tapering. First is the potential government shutdown and debt-ceiling crisis. Weidner wrote, “Of all these, the most important is the debt ceiling. And default isn’t the problem, it’s the more likely scenario of a ratings cut. That would throw global markets into turmoil. Funds required to have a certain amount of top-rated securities may have to dump U.S. debt. Panic could ensue.” Weidner also listed housing and the fact that companies are still hoarding cash as the other issues facing markets today.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,309.40, Down $19.60.
- Silver, $21.41, Down $0.48.
- Platinum, $1,423.60, Down $3.30.
- Palladium, $711.30, Down $5.70.
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