Morning Gold & Silver Market Report – 10/15/2014
Brandi Brundidge
10/15/2014 9:30:00 AM
GOLD REACTS TO STRONG DOLLAR; INFLATION CONCERNS MAY BEGIN FOR U.S. MARKET
Gold reached a four-week high yesterday, but has lost traction today due to a stronger U.S. dollar. The concern over global growth is currently supporting the yellow metal and preventing a further price drop. "Gold is at the mercy of other markets," Macquarie analyst Matthew Turner said. "There are two views here: that the current slowdown is temporary, or that this is another big downturn, and that the central banks are powerless to stop it." India, the world’s second largest consumer of Gold, has not slowed down its buying power as they have doubled their imports for the month of September from August ahead of the country’s notorious wedding and festival season.
The Labor Department reported today U.S. producer prices fell 0.1 percent in September, which is the first time in over a year this has occurred. The market is carefully watching U.S. economic data as the Federal Reserve is expected to hike interest rates at the beginning of 2015 if the economy continues to show growth. Inflation is a key factor in the Fed’s decision to raise interest rates, which the Commerce Department has set a target to gauge. Analysts suggest that today’s producer price report may lead to inflation pressure in the near future for the U.S.
At 10:30 am (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,239.80 Up $3.50
- Silver, $17.53 Up $0.07
- Platinum, $1,267.30 Down $7.00
- Palladium, $779.00 Down $17.10
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
