Morning Gold & Silver Market Report – 10/16/2013
GOLD COULD RETURN TO SAFE-HAVEN STATUS
Gold and Silver prices are trading slightly higher this morning as the U.S. government shutdown enters its 16th day. A CME Group analyst wrote, “The markets are still unsure if there is an actual movement forward or backward (on the shutdown). However, if it appears that the U.S. is likely to encounter a default, Gold prices might return to a safe-haven status.” A default could occur if Congress cannot agree on a deal to raise the debt ceiling before tomorrow’s deadline.
U.S. stock futures are trading higher as well, perhaps on expectations a debt deal will be reached in time to prevent a default. Fitch Ratings put the U.S.’s credit rating on negative watch and said that “prolonged negotiations over raising the debt ceiling … risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency by casting doubt over the full faith and credit of the U.S.” A ratings downgrade is extremely likely if a debt ceiling deal is not reached in time.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,281.90, Up $6.70.
- Silver, $21.36, Up $0.14.
- Platinum, $1,390.20, Up $7.80.
- Palladium, $708.50, Up $1.20.
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