Closing Gold & Silver Market Report – 1/27/2014
PROFIT TAKING PRESSURES GOLD AND PLATINUM
Profit taking was to blame for Gold’s one percent fall Monday, ahead of the Federal Reserve meeting this week, as investors anticipate a second round of tapering. However, Gold did perform well last week, as it was up about one percent, for its fifth consecutive weekly upswing for the first time since September 2012. Platinum fell again for the second day in a row as South African unions attempt to reach an agreement for Platinum mine workers whom have been on strike since last Wednesday. “Platinum sold off as South African unions and management began mediation in their dispute,” Matthew Turner, analyst at Macquarie Group Ltd. in London, said.
According to the National Association for Business Economics, profit growth remains intact as the Federal Reserve begins to strongly taper its monetary policy. "The outlook for 2014 is strengthening," NABE President Jack Kleinhenz said. Profit gains are expected "regardless of any changes in monetary policy." The market is certain that higher borrowing costs caused from the Fed cutting back its bond buying program could provide companies an excuse to fall back on investments to expand their business by not hiring or purchasing new equipment.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,258.90, Down $7.90.
- Silver, $19.73, Down $0.09.
- Platinum, $1,413.00, Down $17.60.
- Palladium, $722.00, Down $12.80.