Closing Gold & Silver Market Report – 2/5/2014
METALS CLIMB ON WEAK JOBS DATA; FED BOND BUYING COULD END IN 2014
Precious Metals rose today after fewer than expected jobs were created by private companies. A reported 175,000 new positions were generated in January, though the Bureau of Labor Statistics predicted 180,000. It has been suggested that severe weather conditions are to blame for concealing true jobs report data. "I don't think we got any weather bounce back in January. But I don't know [if] weather was playing as big as role" as it did in December, Moody’s Analytics chief economist Mark Zandi said. "I bet you a year from now when we get all the revisions in it wouldn't be 74K [jobs created for December]. It'll be 174K."
The Federal Reserve may end its fiscal policy at a much faster pace than expected. Federal Reserve Bank of Philadelphia President Charles Plosser forecasts the U.S. economy to expand by 3 percent while the unemployment rate drops to 6.2 percent by year’s end. “My preference is to scale back our purchase program at a faster pace to reflect the strengthening economy,” Plosser said today in a speech in Rochester, NY. “We must begin to back away from increasing the degree of policy accommodation in a manner commensurate with an improving economy.” Plosser has been an avid opponent of the Fed’s bond purchases.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,259.30, Up $6.10.
- Silver, $19.94, Up $0.46.
- Platinum, $1,381.20, Up $5.80.
- Palladium, $709.00, Up $7.90.
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