Mid-Day Gold & Silver Market Report – 12/4/2013
SHORT-COVERING LIFTS GOLD; STOCKS SLIDE AGAIN ON FED TAPER/BUDGET CONCERNS
Gold has been lifted from a five-month low as short-covering helped buoy the metal following Monday’s substantial dip. Investors are continuing to eye the release of economic data this week to gauge the future of Precious Metals and stocks. A “better-than-expected ADP today points to the likelihood of strong nonfarm payrolls...we are all going to watch data on Friday to see what happens,” Citi analyst David Wilson said. As a Fed stimulus taper appears to be forthcoming, a strong showing in the nonfarm payroll figures could push Gold and Silver lower, stimulating continued interest in physical buying of Precious Metals.
U.S. stocks are down yet again as investors continue to weigh economic reports that many believe indicate an upcoming reduction in the Federal Reserve’s quantitative easing measures. Budget negotiations in Washington, which are under way to calm automatic spending cuts and set the budget for next year, are also weighing in on stocks as committee members attempt to reach an agreement by December 13. “It seems like an olive branch is being extended from both parties right now on the budget,” Michael Mullaney, chief investment officer for Fiduciary Trust Co., said. “That’s positive. It’s a reason for people to buy the dip right now.”
At 1:04 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,249.40, Up $26.70.
- Silver, $19.80, Up $0.71.
- Platinum, $1,378.70, Up $21.40.
- Palladium, $731.50, Up $16.70.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.