Precious Metals Market Review by Bill Musgrave – American Gold Exchange
Gold traded nearly flat, edging down 0.1% to close near $1,168, as weaker economic reports in the U.S. and Eurozone put the dollar’s recent rally on hold.
The U.S. trade deficit surged 7.6% in September as exports fell to a five-month low, signaling weaker global demand that may slow economic growth in the fourth quarter. The surprising gap is projected to cause third-quarter GDP estimates to be revised down to 3% from 3.5%. The dollar’s recent strength is expected to hurt exports further by making U.S. goods less competitive overseas. Factory orders also fell in September for a second month.
The European Commission reduced its Eurozone growth forecast for this year and next because of stagnation in Germany and France, the region’s largest economies. GDP is now expected to rise by 0.8% in 2014 and 1.1% in 2015, down from 1.2% and 1.7%, respectively. More stimulus is likely from ECB, which meets this week in Frankfurt to discuss monetary policy.
Equities finished little changed, with the Dow adding 0.1% while the Global Dow subtracted the same. The dollar pulled back against most major rivals, trading flat against the yen after rising to a seven-year high yesterday.
The other precious metals fell harder than gold, with silver and platinum plunging 1.5% while palladium lost 1.7%.
At the Comex close: December gold edged down $2.10 to $1,167.70; December silver dropped 25 cents to $15.9; January platinum lost $18.10 to $1,224.70; and December palladium shed $13.75 to $790.65 an ounce.