Morning Gold & Silver Market Report – 6/16/2014
Peter LaTona
6/16/2014 9:19:00 AM
GOLD PRICES CLIMB ON RISING MIDDLE EAST VIOLENCE
Instability in the Middle East will drive up Gold and oil prices as markets continue their climb. Investors are nervous so they will shift to safe haven currencies, bonds and Gold. The Tokyo stock market saw its biggest fall in a month and the European market is off to a rocky start. "I think investors are starting to look at this in terms of global risk aversion," Stuart Culverhouse, chief economist at emerging market specialist brokerage Exotix, said. "Clearly it is a fairly fluid and dangerous situation, but if there is a significant deterioration in events, then that is pretty much a lose-lose for everyone." The Ukraine crisis is also fueling this nervousness as pro-Russian militants shot down a Ukrainian plane, killing all 49 military personnel on board.
The U.S. Federal Reserve is expected to announce another $10 billion monthly reduction in bond purchases Wednesday. The continued easing is expected, so the focus will be on the Fed’s economic assessment. If the Fed gives an upgraded version of their previous statements on the U.S. economy, it could shake up the markets. "The risk going into the meeting is for a slightly more hawkish tone than the market is expecting," Societe Generale chief U.S. economist Aneta Markowska wrote to CNBC.com. "We see quite a bit of room for upgrades to the current economic assessment. ... Labor market conditions are no longer 'mixed,' and continue to show further improvement." Most economists are expecting a statement similar to the last, but if the Fed is more hawkish in tone, it will surprise markets.
At 8:05 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,280.60, Up $4.50.
- Silver, $19.71, Down $0.01.
- Platinum, $1,446.40, Up $9.40.
- Palladium, $814.90, Up $2.30.
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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
