Morning Gold & Silver Market Report – 1/4/2013
Ryan Schwimmer
1/4/2013 8:01:00 AM
METALS DROPPING AFTER JOBS REPORT
Precious Metals prices are tumbling in early morning trading as they react to minutes from the latest Federal Reserve meeting which suggested that quantitative easing could be coming to an end soon. Stan Shamu of IG Markets said, “Gold had been one of the biggest beneficiaries of the Fed’s easing program as it looked more attractive as an inflation hedge.” Analysts at Barclays explained that this was unexpected, writing, “The range of views on the likely timing of completion of asset purchases was apparently sooner than market expectation.”
Seemingly on cue after the Fed minutes were released, the ADP jobs report showed a gain of 155,000 jobs in December, continuing a steady trend of improvement. When the Fed announced the indefinite asset purchases last year, one of the conditions of the end of this round of quantitative easing was better jobs numbers, and the past few months have given that. The unemployment rate, however, remained flat at 7.8 percent.
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,648.30, Down $28.30.
- Silver, $29.74, Down $1.01.
- Platinum, $1,548.30, Down $20.60.
- Palladium, $692.20, Down $6.00.
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
