Morning Gold & Silver Market Report – 12/5/2013
POSITIVE DATA ERASES GOLD’S GAIN
Precious Metals and U.S. stock futures dropped after economic data was released Thursday. The U.S. jobless claims report showed that 23,000 fewer people filed new unemployment claims, though there was a caveat that the number may be skewed based on difficulties with seasonal adjustments. A revision to third-quarter U.S. gross domestic product also brought upbeat news, as it showed 3.6 percent growth, up from 2.8 percent reported one month ago. Investors have been eyeing economic data releases for clues as to when the U.S. Federal Reserve may begin to taper its quantitative easing program, with positive reports leading many to believe that it could happen as soon as the Fed’s December 17-18 policy meeting.
Tomorrow’s release of the ADP nonfarm payrolls report is being looked at as a big indicator of future Fed plans. ANZ analyst Victor Thianpiriya said, “The markets are still positioned quite short. There is going to be a bigger reaction to a weaker-than-expected nonfarm payrolls report than to stronger-than-expected numbers. If it’s a strong report, it would just give the existing shorts a bit more validation and we could see prices go back to $1,220 [per ounce].”
At 9:07 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,223.70, Down $25.90.
- Silver, $19.29, Down $0.59.
- Platinum, $1,362.70, Down $15.30.
- Palladium, $728.40, Down $0.90.
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