Morning Gold & Silver Market Report – 1/21/2014
TAPERING SPECULATION HAS DOLLAR UP, GOLD DOWN
Gold is trading around one percent lower and Silver is trading more than two percent lower in early-morning trading as investors speculate whether the Federal Reserve will further taper its quantitative easing program next week. A second round of tapering could see the Fed’s bond-buying program cut by $10 billion to $65 billion per month. The dollar rose on this speculation, making way for Gold’s dip.
MarketWatch’s Jeff Reeves wrote about three risks that could crash the stock market this year. The first is disappointing jobs numbers. Reeves wrote that December’s disappointing report (released at the beginning of this month) was an outlier due to the bad weather, but “of course, the second option is that December’s jobs numbers weren’t a fluke… Friday, Feb. 7 [is] going to be a big day for the markets when January jobs data hits.” The second risk is bad earnings. “Profit margins have been at record highs and haven’t cracked, so why would they this earnings season? Or the next? That’s the million-dollar question, and a huge risk to watch.” A lending drought is also a large concern for the markets. “If reports continue to show slowing lending in the U.S. and around the world, it could get painful for investors.”
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,241.10, Down $13.30.
- Silver, $19.83, Down $0.52.
- Platinum, $1,447.10, Down $9.00.
- Palladium, $743.80, Down $4.80.
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