Closing Gold & Silver Market Report – 10/16/2014
Brandi Brundidge
10/16/2014 4:50:00 PM
PLATINUM MOVES BELOW GOLD; FED MAY WAIT TO END STIMULUS PROGRAM
Precious Metals prices are down across the board today with Platinum falling below Gold for the first time since April 2013. Platinum has been on the down slope since July somewhat due to the ongoing mine strikes in South Africa, which extended a third straight supply shortage. South Africa is home to three major Platinum producers that provide about 70 percent of the world’s supply. “The more industrial of the precious metals are being sold on concerns that global growth is really starting to be fragile,” Robin Bhar, an analyst at Societe Generale SA in London, said today by phone. “There’s a fear that the turmoil is the start of something more sinister and maybe longer lived than we were hoping.”
The head of the St. Louis Federal Reserve Bank, James Bullard, stated today he believes the Fed should continue its monetary policy for now due to a fall in inflation expectations. "Inflation expectations are dropping in the U.S., and that is something that a central bank cannot abide," James Bullard told Bloomberg television. "We have to make sure that inflation and inflation expectations remain near our target. For that reason, I think a reasonable response by the Fed in this situation would be to ... pause on the taper (of bond purchases) at this juncture and wait until we see how the data shakes out into December," Bullard said. Precious Metals prices, especially Gold, have pulled back recently with better than expected U.S. economic data and a stronger U.S. dollar, which has also resulted in the Fed deciding to end their bond-buying program.
At 5:15 pm (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,241.10 Down $5.70
- Silver, $17.42 Down $0.11
- Platinum, $1,251.20 Down $11.70
- Palladium, $744.60 Down $20.60
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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
