Mid-Day Gold & Silver Market Report – 8/21/2014
Peter LaTona
8/21/2014 11:50:00 AM
GOLD & SILVER PRICES CONTINUE TO SLIDE ON FED EXPECTATIONS
Gold and Silver prices fell sharply in morning trading and although declines have continued, the pace of decline has slowed. The bad news for Gold is good news for stocks. The S&P 500 topped a record level this morning. The expectations that the Fed will raise interest rates sooner than later as a result of good economic data are growing stronger. “The market is really in a sweet spot for U.S. stocks, fundamentals continue to be very good,” Jeff Kravetz, the Phoenix-based regional investment director at US Bank’s Private Client Reserve, said via phone. “This Jackson Hole meeting is going to be about labor and Yellen is an expert on labor. That would bode for more dovish comments as she’s said repeatedly the labor market, despite employment, hasn’t come in where they need it to be.”
The labor market may not be where it needs to be, but jobless claims in the U.S. fell more than forecasted last week. For the week ending August 16th, jobless claims fell by 14,000 to 298,000. The median forecast conducted by Bloomberg of 46 economists called for 303,000. “The job market is doing well right now, there’s no doubt about it,” Guy Berger, an economist at RBS Securities Inc. in Stamford, Connecticut, said. “There’s a good chance we’ll get another solid month of payrolls. Lower layoffs, together with faster hiring, mean better prospects for consumer spending.”
At 1:00 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,276.40 Down $19.80
- Silver, $19.42 Down $0.12
- Platinum, $1,420.20 Down $9.00
- Palladium, $880.60 Up $11.20
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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
