Cache Metals Daily Market Reports
It was a choppy end to 2013 as metals saw a broad based decline over the year of 28%. Precious metals have succumbed to selling pressure as Exchange Traded Funds (ETF) holders liquidated in favour of equities. ETF holdings have fallen back to levels last seen in 2008 before the global crisis. Investors lost faith in the metal as a store of value as equities rallied and an economic recovery prompted the Federal Reserve to pare its $85 billion in monthly bond. Gold fell to a year low of $1182, before recovering slightly to traded and close the year at $1202.
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After a 18 day delay the much anticipated U.S non-farm payrolls and unemployment number was released this morning. It was a mixed bag. September non-farm payrolls grew by 148,000, well below the 182,000 forecast. The August number was revised upwards to 193,000 from 169,000. The unemployment rate came in at 7.2 percent.
It was another wild week for the precious metals market after a 11th hour deal over the debt ceiling Gold put in a knee jerk reaction jumping $40 in overnight trade Wednesday. The metal touched a low of $1276, before turning on short covering and touching a high of $1321 Thursday in the North American session.
The precious metals market has remained in a "sell off" mode despite the U.S government shut down and the looming debt ceiling debate. The metals have been bearish all week with the dollar index rising.
What the world was waiting for never happened. The release of the Federal open market committe minutes shocked traders. On Wednesday, the Fed declined to start the unwinding of its monetary easing measures with traders expecting $10 billion cut. The news sent shock waves throughout the market as gold spiked to $1375 in a matter of hours.
It has been a very eventful few weeks for the precious metals markets. We have seen spot gold and silver rally to multi month highs of $1434 and $25.10 respectively. The main drivers for these rallies was the ongoing strife in Syria, which has since subsided . The market has also been fixated one "tapering", will he or won't he. Since Federal Reserve chairman Ben Bernanke’s initial comments on tapering back in June, the market has been heavily focused on one question: when will the unwinding of QE3 start?
Precious metals over the past 4 months have taken a considerable beating. Today we sit at $1280 and $19.80 in gold and silver respectively.
It has been a wild past for weeks for spot gold and silver, with yellow metal holding $1539 on the down side and silver touching $26.68. The metals have seen a bounce back this morning.
The precious metals market remains jittery as the situation in Cyprus is coming into its final hours. Spot gold lost $12 to trade to $1604, while silver moved lower to $28.54.
Trouble in the Eurozone has reared its ugly head. Traders were sellers of the euro dollar as flight to gold was on the table as Cyprus is considering a tax on bank deposits to pay for a bailout.
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