Morning Gold & Silver Market Report – 11/4/2013
POTENTIAL ECB STIMULUS PUSHES GOLD HIGHER
Loose monetary policy remains the focus of Gold traders today as rumors surrounding possible monetary easing measures in the eurozone helped lift the yellow metal this morning. The news that the European Central Bank (ECB) might begin its own stimulus program arrives on the heels of speculation that the Federal Reserve could initiate tapering measures as early as December. "The (U.S.) central bank is keeping markets guessing. Now December is back on the agenda," Societe Generale analyst Robin Bhar said. "I think it's unlikely, but the Fed statement and thinking suggests they haven't completely ruled that one out. That's really impacting the market, as well as the turnaround in the euro/dollar.” As equities markets continue to notch record levels, short-term ETF traders remain bullish on Gold leaving physical buyers to await new direction on central bank monetary policy.
U.S. stock futures are on the rise this morning following a fourth straight week of gains and anticipation of corporate earnings and employment figures. “Even when the economic data hasn’t been terribly good, that just pushes the tapering of quantitative easing further away, which means there will be more of this free money floating for longer,” Standard Life Investments Ltd. strategist Frances Hudson said. That’s “one of the big drivers for equity markets.” As both positive and negative news presently seem capable of driving U.S. stocks higher, investors await the time when traditional fundamentals will drive equities as opposed to loose monetary policy.
At 9:46 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,320.20, Up $5.00.
- Silver, $21.86, Down $0.03.
- Platinum, $1,454.70, Up $1.80.
- Palladium, $746.90, Up $7.60.
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