Closing Gold & Silver Market Report – 9/25/14

Ted Prince

9/25/2014 4:06:00 PM

GOLD BOOSTED BY EQUITY SELLOFF

The Gold price rebounded slightly today as stocks posted their largest single-session loss since July.  Gold has fallen more than five percent this month as strength in the U.S. dollar and ongoing gains among equities indexes have quelled the safe-haven demand for Precious Metals.  “The stock market’s big drop is providing some temporary support to Gold,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates, said. “Also, there could be some physical buying” adding support for metals prices, he said.  With the dollar at a four-year high, Gold bugs are speculating about where the yellow metal will bottom out and reverse its current bearish trend. 

U.S. stocks were hit hard Thursday. However, analysts and investors are currently groping for reasons to explain today’s selloff, which saw benchmark indexes stoop to their lowest level in more than two months.  “It is not clear what caused this sudden shock to the system, but it serves as a reminder about the dangers of complacency – especially for the bulls in the case of stocks and the bears in the case of precious metals,” Fawad Razaqzada, technical analyst at Forex.com, said.  With today’s significant pullback, investors are becoming more anxious about a potential large-scale correction among stocks. 

At 1:00 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,223.40 Up $2.40
• Silver, $17.56 Down $0.21
• Platinum, $1,315.30 Down $6.10
• Palladium, $802.00 Down $18.10

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