Closing Gold & Silver Market Report – 11/7/2013
GOLD AND STOCKS FEEL PRESSURE AS DOLLAR GAINS STRENGTH
Precious Metals continued to trade lower through afternoon trading. The European Central Bank’s (ECB) decision to cut its key benchmark interest rate along with positive GDP data for the U.S. helped the U.S. dollar surge higher and took investor’s focus away from Precious Metals. “Precious metals, like all the other markets, came to life when the ECB surprised everyone with a 25 basis-point interest-rate cut,” GFT Markets’ technical analyst Fawad Razaqzada said. “News of a surprisingly good U.S. third-quarter GDP weighed further on the metals as that gave investor even more reason to pile into the U.S. dollar…and out of safe-haven metals.”
Oil prices hit a four month low on Thursday while U.S. and foreign stocks also struggled. Speculation that the Federal Reserve may begin to taper its quantitative easing program earlier than anticipated along with ECB’s continued struggles are beginning to affect the market. “This morning's GDP report sent the dollar surging, and anything commodity-based that was dollar-related just turned and headed south,” Windham Financial Services’ chief investment strategist Paul Mendelsohn said. “That just rolled over into the rest of the (stock) market.”
At 5:13 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,309.90, Down $10.60.
- Silver, $21.71, Down $0.11.
- Platinum, $1,453.50, Down $14.90.
- Palladium, $763.70, Down $1.60.
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