Morning Gold & Silver Market Report – 10/28/2014

Brandi Brundidge

10/28/2014 10:28:00 AM

GOLD LIFTED BY WEAK DOLLAR; HOUSING MARKET FUTURE UNKNOWN

Precious Metals reacted positively to data from the U.S. Commerce Department showing durable goods orders fell 1.3 percent last month. The news pressured the U.S. dollar, which assisted Gold as it regained nearly four percent this month on global growth concerns. The Federal Reserve begins its two day Federal Open Market Committee meeting today and is expected to announce the conclusion of its monthly bond-buying program that has slowly been scaled back this year. The market will closely monitor for any signs interest rates may increase in the near future, along with how the U.S. economy is performing in the Fed’s eyes. “There were some stops triggered once we breached yesterday's low, but China walked in and pushed up Gold,” one Hong Kong trader said. “People are nervous ahead of the FOMC and big position changes are unlikely. For the moment, I think we will hold between $1,220 and $1,240 [per ounce].”

U.S. housing data released this morning showed an overall increase for single family home prices in August from 2013, though the increase fell short of expectations. The S&P/Case Shiller composite index compared 20 metropolitan areas and reported a 5.6 percent gain for the month of August, the lowest year-to-year growth since November 2012. “Despite the weaker year-over-year numbers, home prices are still showing an overall increase, as the National Index increased for its eighth consecutive month,” S&P Dow Jones Indices index committee chairman David Blitzer said in a statement. The housing market will be a focus point once the Fed ends its stimulus program, as the policy initially began after the devastation from the notorious 2008 U.S. housing bubble.

At 11:30 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,231.10 Down $0.20
• Silver, $17.28 Up $0.06
• Platinum, $1,272.00 Up $15.50
• Palladium, $793.60 Up $5.50

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