Mid-Day Gold & Silver Market Report – 11/6/2013
DOLLAR WEAKENS ON ONGOING STIMULUS BETS
Gold is up slightly today as a weaker U.S. dollar helped curb the metal’s recent losing streak. Expectations that the U.S. Federal Reserve will continue its quantitative easing program well into 2014 has put pressure on the dollar and helped boost Precious Metals prices. "The relative weakening of the dollar is giving some support today but... if the non-farm payrolls come in better than expected on Friday, then we could see gold lose that support," Mitsubishi analyst Jonathan Butler said. Economic reports, such as the non-farm payroll numbers, are being closely examined as prime indicators of forthcoming Fed monetary policy. Upbeat data could influence Fed officials to begin scaling back pro-gold stimulus measures.
U.S. stocks continue to rise as the Dow Jones Industrial Average rallies toward a record close. Investors insist that perpetuation of the Fed’s stimulus program will continue to prop up equities. “The central bank has decided they will reward risk behavior and that’s what we’re going to get,” Motley Fool Asset Management’s chief investment officer Bill Mann said. “The market will keep hitting their highs until the stimulus reverses itself.” Investors will now await Friday’s non-farm payroll numbers to gauge the future of markets movement.
At 1:05 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,319.30, Up $9.20.
- Silver, $21.86, Up $0.17.
- Platinum, $1,468.80, Up $17.20.
- Palladium, $764.30, Up $13.00.