Mid-Day Gold & Silver Market Report – 10/18/2013
GLOBAL MARKETS REACT TO U.S. DEBT AGREEMENT
Precious Metals are slightly lower through mid-day trading. However, even with today’s slight pullback, Gold is on track for a weekly gain of almost four percent. Michael Smith, president of T&K Futures & Options in Port St. Lucie, Florida, stated, “People want to be in equities as the most lucrative investment. Also, there is some profit-taking after [Gold’s] big rally.” With expectations of continued Federal Reserve quantitative easing, and no taper in sight, investors are beginning to become bullish on Gold.
Global equity markets responded Friday to the last-minute budget deal stuck by U.S. lawmakers. The U.S. dollar has reached an eight-month low while global markets reacted with a five-year high. Commonwealth Foreign Exchange chief market analyst Omer Esiner said, “The real economy has been negatively impacted by the government shutdown and uncertainty of the debt crisis, all of which pushes out eventual Fed policy normalization which is bad for the dollar.” This may be big news for Gold, which has historically had a inverse correlation with the dollar.
At 2:01 p.m. (ET), the APMEX Precious Metals prices were:
- Gold, $1,315.80, Down $9.20.
- Silver, $21.93, Down $0.06.
- Platinum, $1,438.80, Up $2.90.
- Palladium, $741.80, Up $3.00.