Morning Gold & Silver Market Report – 8/8/2014

Ryan Schwimmer

8/8/2014 8:16:20 AM

PRICES WHIPSAW ON GEOPOLITICS, DATA

The Gold price hit a 3 1/2 week high earlier this morning after last night’s announcement that President Barack Obama authorized air strikes in Iraq. Sharps Pixley CEO Ross Norman said, “We keep seeing some strength in Gold prices on geopolitical tensions but we constantly see rallies fade... before the important $1,345 [per ounce] level. We've come through some technical levels but we keep losing momentum on the upside ... Gold keeps reverting to a mean, which is killing enthusiasm ... only very serious escalation of tensions in Ukraine or the Middle East could drive price prices higher.”

The Gold price turned lower after U.S. productivity numbers were released, but started to recover shortly thereafter as the U.S. military began an airstrike on ISIS artillery in Iraq. Evan Lucas, market strategist at IG, said, “Any signs that the U.S. is going to have to support the Iraqi military and security forces against the rise of ISIS will fuel market suspicion of another U.S.-led offense in the country.” U.S. stock futures also bobbed higher and lower after the data, airstrike announcement, and a report showing Russia could be aiming to soothe tensions with Ukraine.

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

• Gold, $1,311.30, Down $1.20.
• Silver, $19.97, Down $0.04.
• Platinum, $1,477.60, Down $3.90.
• Palladium, $858.40, Up $1.30.

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