Closing Gold & Silver Market Report – 1/13/2014
GOLD’S MOMENTUM REMAINS; CRUDE OIL DECLINES ON GEOPOLITICAL TENSION
Gold continued to climb Monday from last week’s disappointing U.S. jobs report. Several big banks have provided their 2014 outlook for Gold. Some have positive outlooks, while others are negative on the yellow metal as the U.S. economy continues to strengthen. Sharps Pixley expects Gold to have a Goldilocks year, meaning it will perform just right, with an average of $1,274 an ounce and a high of $1,350 an ounce. “It feels like the market just might be on the turn; much of the Gold negative news is in the price and investor appetite seems to be insatiable at these levels,” Sharps Pixley chief executive officer Ross Norman said. “Besides, with oil above $100 a barrel, we should of course be closer to the $1,600 [an ounce] level. Perhaps that’s for 2015.”
Crude oil supply concerns continue to grow Monday as oil futures closed below $92 per barrel. The Federal Reserve’s decision to taper its quantitative easing program has already affected crude oil prices and news of developing geopolitical tension in Iran is not helping the matter. There is an agreement currently in place between Iran and six world powers that caps Tehran’s nuclear program in exchange for easing sanctions on Iran. If the arrangement remains and provides sanctions on Iranian oil, “then the prospect of approximately 1 million barrels a day returning to the global market at some undetermined point this year would weigh on prices,” Matt Smith, author of energy and financial-market newsletter The Daily Distillation, said Monday.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,254.80, Up $5.40.
- Silver, $20.45, Up $0.18.
- Platinum, $1,446.20, Up $7.30.
- Palladium, $740.20, Down $5.80.
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