Morning Gold & Silver Market Report – 10/31/2013

Ryan Schwimmer

10/31/2013 8:19:07 AM

GOLD PRESSURED BY STRONGER DOLLAR

A stronger U.S. dollar has Precious Metals prices falling sharply in morning trading, with the Gold price down approximately 1.5 percent and the Silver price down approximately 4.5 percent. Although the U.S. Federal Reserve didn’t announce that it would begin tapering its quantitative easing program, Macquarie analyst Matthew Turner said, “The market was expecting that in light of the government shutdown and weaker data there was going to be a supportive statement, perhaps more dovish than it has been in recent months, but it didn't move in that direction.” ANZ analyst Victor Thianpiriya added, “For Gold, the intraday moves will continue to be driven by gyrations in the U.S. dollar.”

The Federal Reserve stated Wednesday that based on recent data, the economy is too weak to begin tapering. When the jobless claims report was released Thursday morning, it showed that claims fell by a less-than-expected 10,000 last week. However, the four-week moving average actually rose by 8,000 to its highest level in more than six months. Now that California’s highly-publicized reporting issues are corrected, claims are at a higher level than they were at the end of summer, which suggests that the labor market has softened.

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,328.10, Down $23.20.
• Silver, $22.07, Down $0.97.
• Platinum, $1,458.80, Down $22.10.
• Palladium, $741.50, Down $9.10.

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