Mid-Day Gold & Silver Market Report – 8/5/2014

Peter LaTona

8/5/2014 12:52:00 PM

GOLD & SILVER PRICES FALL SLIGHTLY – STOCKS REVERSE & HEAD LOWER

Gold and Silver prices are lower in morning trading as they continue past week’s trend of trading in a tight range. The threat of the Fed raising interest rates push prices lower, while the geopolitical tensions in the Middle East and the Ukraine provide price support. Stocks began the day wanting to go up on data from the ISM report, but the above mentioned fears of increased interest rates and geopolitical tensions only suppress stock prices. “In the last couple weeks we’ve been getting reports that the economy is definitely recovering, including GDP,” John Fox, director of research at Fenimore Asset Management in Cobleskill, New York, said. “People are now focusing on the fact that the Fed isn’t going to be this accommodative forever.”

Russia announced new military exercises near the Ukrainian border. The Russian air force will employ over 100 aircraft including fighter jets and bombers. Maneuvers are expected to go on all week in the region. Russia has been accused of beefing up troops on the Ukraine border. This announcement will alarm Western leaders. In a sign that the Ukrainian army may be tiring of this conflict it was reported that 483 Ukrainian soldiers crossed into Russia last night seeking asylum. "They were tired of the war and wanted no further part in it," Vasily Malayev, spokesman for the border guards in the Rostov region of Russia, told Reuters by telephone.

At 1:50 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,288.50 Down $0.40
• Silver, $19.87 Down $0.38
• Platinum, $1,456.50 Down $10.10
• Palladium, $850.80 Down $5.40

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