Mid-Day Gold & Silver Market Report – 1/15/2014
QE EXPECTATIONS PRESSURE GOLD; ECONOMIC FIGURES PUSH S&P TO RECORD HIGH
The Gold price is down from a one-month high today as ongoing speculation surrounding a reduction in Fed stimulus measures strengthens the dollar and weighs on Precious Metals. “Gold is under pressure because of the good economic recovery outlook,” Frank Lesh, a trader at FuturePath Trading, said. “The dollar strength is working against prices.” A poor non-farm payroll report coupled with physical buying of Gold and Silver has been instrumental in lifting prices in the last week. However, sinking near-term inflationary concerns and a booming stock rally have caused short-term metals investors to temporarily suspend their demand for Gold. Even with today’s minor retreat, the yellow metal appears to be range-bound as global economic news has yet to be jarring enough to rattle prices from their current levels.
Strong domestic manufacturing data and upbeat corporate earnings figures assisted in driving U.S. stocks today as the S&P 500 reached a new record high. "For those suggesting the market 'needs' earnings growth or something along those lines, we'd point out that is exactly what is occurring," Dan Greenhaus, chief strategist at BTIG, said. Greenhaus and other experts expect the release of fourth quarter earnings numbers to come in more than 20 percent higher than from the prior year. As metals investors await the impact of further quantitative easing reductions on Gold and Silver, equities investors wonder if the market momentum from 2013 can continue through 2014.
At 1:12 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,241.60, Down $6.30.
- Silver, $20.21, Down $0.13.
- Platinum, $1,430.90, Down $4.90.
- Palladium, $744.00, Up $5.10.
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