Morning Gold & Silver Market Report – 10/21/2014

Brandi Brundidge

10/21/2014 8:50:00 AM

GOLD HITS ONE-MONTH HIGH; LOWER OIL PRICES ELEVATE CONCERN

Precious Metals prices are on the rise with Gold reaching a one-month high this morning with a weaker U.S. dollar and continued concern over global growth.  Recent data from China showed their growth fell in the third quarter to its lowest since the infamous 2008 worldwide financial crisis, while its gross domestic product grew 7.3 percent above the 7.2 percent forecasted by analysts.  "The retreat of the U.S. dollar from multi-year highs removed the main obstacle for gold. Weak economic data in the eurozone and China led to concerns that the U.S. economy will not be immune against a slowdown in economic growth, causing a turmoil in wider markets over the past few days,” Commerzbank analyst Carsten Fritsch said. If economists even suggest a slowdown in growth is occurring in the U.S. and it reflects in economic data the Fed may decide to delay raising interest rates which is positive for Gold.

Crude oil hit a low recently at $79.78 a barrel on October 16, which is the lowest point since June 2012.  These lower prices are raising concerns for oil development. New York-based ITG have forecasted that at $80 a barrel the market could see a 5 percent growth down from a previous outlook of 12 percent. According to Macquarie Group Ltd., drillers may add fewer barrels to domestic output than last year due to lower prices. “Though some forecasts show oil rebounding or stabilizing, any slower increase in U.S. output would shake perceptions for the global market,” Vikas Dwivedi, an oil and gas economist in Houston for Sydney-based Macquarie, said.

At 9:50 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, 1,254.50 Up $7.80
• Silver, $17.59 Up $0.18
• Platinum, $1,285.30 Up $15.80
• Palladium, $777.30 Up $14.00

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