Mid-Day Gold & Silver Market Report- 10/2/2014

Peter LaTona

10/2/2014 11:51:00 AM

THE IMF CUTS GLOBAL ECONOMIC GROWTH OUTLOOK

Although there is anecdotal evidence that the U.S. economy is inching forward the same cannot be said for the global economy. Today, International Monetary Fund (IMF) Managing Director Christine Lagarde said the global economic rebound is weaker than expectations six months ago. "Yes, there is a recovery but as we all know—and can all feel it—the level of growth and jobs is simply not good enough,'' Lagarde said, according to prepared remarks at Georgetown University in Washington. "There are some serious clouds on (the) horizon." Lagarde also added that only a modest economic pickup is expected in 2015.

The U.S. stock market began a sharp drop around 10:30 a.m. (ET). Gold and Silver prices are relatively stable, while the two industrial metals, Platinum and Palladium are way in the red. The stock market dip was tied to the release of IMF’s concerns about the global economy. The European Central Bank (ECB) added fuel to the fire when they announced this morning that they would be stepping up monetary stimulus. ECB President Mario Draghi said that the ECB would continue to purchase assets for two or more years to lift inflation and create economic growth. "The key is what Draghi said, and he was quite pessimistic," Peter Cardillo, market economist at Rockwell Global Capital, said.

At 12:50 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,218.00 Up $1.00
• Silver, $17.11 Down $0.22
• Platinum, $1,272.40 Down $19.20
• Palladium, $770.20 Down $14.30

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