Mid-Day Gold & Silver Market Report – 2/6/2014
GOLD EVEN AS HIGHER STOCKS DEPRESS EARLY GAINS
The Gold price is trading flat Thursday as strong gains in U.S. equities have suppressed early gains made by the yellow metal. A drop in unemployment figures and the European Central Bank’s commitment to existing interest rates helped boost stocks today, causing a temporary pullback from session highs for Gold. Investors now await January jobs figures, set to be released Friday morning. “If we get a good number, then the odds are high that the [U.S. Federal Reserve] may become even more aggressive in withdrawing their stimulus package, and that could certainly impact Gold,” Naeem Aslam, chief market analyst at AvaTrade, said. “If we do see an aggressive approach by the Fed, the selloff in equities could continue again and this could be positive for Gold. At the same time, we are seeing consistent improvement in physical demand for Gold, which is also providing a support for the price.”
The Dow Jones Industrial Average is realizing its largest session of gains this year, as reassuring unemployment numbers and positive corporate earnings boosted U.S. equities. “The economy is showing somewhat steady improvement and earnings have been good,” Richard Sichel, chief investment officer of Philadelphia Trust Co., said. “The better economic reports are helpful, it gives a little bit of a confidence booster.” Last week’s drop in jobless claims is the largest drop in three weeks. Accommodative monetary policy by the Federal Reserve is largely established based on domestic employment improvement.
At 1:52p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,258.90, Even.
- Silver, $19.99, Up $0.13.
- Platinum, $1,376.70, Down $4.60.
- Palladium, $711.30, Up $3.20.