Mid-Day Gold & Silver Market Report – 10/9/2014

Peter LaTona

10/9/2014 12:03:00 PM

GOLD & SILVER CLIMB – DOW OFF OVER 250 POINTS

It is rare that the minutes of FOMC meetings reveal information that rises to the level of surprising, but yesterday’s release can be considered no less than surprising. There is still a great deal of debate within the Fed as to when to raise interest rates. This has caused concerns that rates will be raised sooner rather than later, however, this may not be the case. Gold and Silver prices shot up on the news, but surprisingly, U.S. stocks did not. Normally stocks would rise in this scenario. However, much of the Fed concern was the rapidly deteriorating global economy and it’s potential to affect the U.S.

In his first on-the–record comments since joining Janus Capital, Bill Gross expressed his view that the global economy is declining and this will likely cause central banks to stay on course with no changes likely anytime soon. "A zero percent interest rate has a problem—it distorts capitalism. It basically recognizes that capitalism can't exist forever when people can borrow for free," Gross said. "In many cases, they borrow for free and buy financial assets, as opposed to investing it in the real economy. As a result, we're seeing distortions that central banks, and the Fed being one of them, want to correct." Lastly, he warns investors that, “Times have changed.

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

• Gold, $1,226.20 Up $18.20
• Silver, $17.47 Up $0.34
• Platinum, $1,278.40 Up $9.50
• Palladium, $801.60 Up $4.20

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