Closing Gold & Silver Market Report – 10/13/2014

Brandi Brundidge

10/13/2014 4:23:00 PM

Published on 10/13/2014 4:20 pm by Chris Boswell

GOLD HIGHER DUE TO DOLLAR WEAKNESS & CHINESE DATA

Gold rose to $1,237 before settling at $1,231 to end the trading day in London.  Much of the action in Precious Metals today was a result in the weakness of the dollar, which fell 50 BPS against the Euro.  However, the shiny yellow metal rose today as it proved to be a safety play for investors that are showing increasing skittishness in the market.  The Volatility Index (VIX) has jumped 74 percent in the past three months and has crossed above 20 which the markets see as a sign of investor fear.  With the VIX closing above 24 for the first time since spring of 2012, some are speculating that in the near future the indicator may rise sharply. 

Further enhancing Gold’s safe-haven appeal was the release of China’s economic data.  The data suggests that the Chinese economy grew at its slowest pace in five years sparking some investors to speculate that China may take on more stimulus measures to combat this. Despite this, some continue to view metals as susceptible to further losses. “While the potential for short-covering rally could see gold extent its gains, we believe the bounce is likely to be short lived and remain cautious given the headwinds the macro environment presents,” Suki Cooper, precious metals analyst at Barclays Capital, said.

At 4:20 pm (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,239.30 Up $15.60
• Silver, $17.55 Up $0.19
• Platinum, $1,268.50 Up $4.90
• Palladium, $787.30 Down $1.20

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