Morning Gold & Silver Market Report – 9/8/2014

Ryan Schwimmer

9/8/2014 8:06:11 AM

GEOPOLITICS, DISAPPOINTING DATA NOT BOOSTING GOLD

The Gold price is slightly lower in morning trading, which is confusing to analysts who are accustomed to Gold finding support in geopolitical tensions and disappointing economic data. Edward Meir of INTL FCStone said, “Curiously, geopolitical tensions do not seem to be providing it with much of a bid, and we suspect that this is because the apparent political upheavals are not impacting the global equity or bond markets other than to cause them to rally.”

Allianz Chief Economic Adviser Mohamed El-Erian attempted to shed some light on this topic, as he said, “If you look at what happened to long-term unemployment, down by 192,000 to 3 million, ... if you look at the improvement in the unemployment rate, that was genuine. It wasn't due to a fall in participation rate.” El-Erian went on to predict the Fed’s big upcoming moves. “My baseline for the Fed is they exit QE completely by October. The first rate hike will probably come in the middle of next year. The balance of risk is [the rate hike] comes slightly earlier rather than later.”

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

• Gold, $1,266.20, Down $2.10.
• Silver, $19.22, Up $0.05.
• Platinum, $1,406.40, Down $5.60.
• Palladium, $885.40, Down $6.10.

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