Closing Gold & Silver Market Report – 10/29/2013
Ted Prince
10/29/2013 4:08:00 PM
STRONGER DOLLAR WEIGHS ON GOLD; QE EXPECTATIONS FUEL RECORD S&P FINISH
The Gold price suffered a mild drop from a five-week high today as the U.S. dollar rose against competing world currencies. “A lack of fresh, bullish fundamental news is keeping buyers scarce,” one analyst said. “The key ‘outside markets’ are also in a bearish daily posture for the Precious Metals – a firmer U.S. Dollar Index and weaker crude-oil prices.” Investors and analysts alike continue to ponder the future of the Federal Reserve’s liberal quantitative easing (QE) policy. The monthly two-day Federal Open Market Committee meeting began today. In the past, the meeting has been a platform for significant Fed policy announcements but few experts are expecting momentous news following tomorrow’s close. Most experts expect the bullion-friendly monetary easing program to continue until the second quarter of 2014.
U.S. stocks continue their winning streak as the S&P 500 climbed to its third straight record finish as slow domestic growth indicators lead to expectations of continued monetary stimulus. “It still seems that the Fed has created this good news is bad news, bad news is good news scenario,” Huntington Asset Advisors chief investment officer Randy Bateman said. “The anticipation is that the Fed will retain its purchasing of $85 billion in monthly Treasury and mortgage securities, which is going to continue to help the housing market.” Equities and Precious Metals investors continue to eye any economic news that could lead to a sooner-than-expected QE taper. However, weak consumer confidence reports, factory output, home sales data and mixed corporate earnings point to sluggish economic growth and will most likely convince Fed officials to continue their asset buying program.
At 5:07 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,347.00, Down $7.20.
- Silver, $22.60, Up $0.01.
- Platinum, $1,463.40, Down $10.50.
- Palladium, $747.90, Down $3.60.
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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
