Morning Gold & Silver Market Report ? 9/17/2013

TAPERING SEEN ON HORIZON AS FED MEETING BEGINS

The Gold price is mostly flat and the Silver price is slightly lower ahead of the start of the U.S. Federal Reserve?s two-day policy meeting. Most economists expect the result of this meeting to be a  small beginning to quantitative easing (QE) tapering. The central bank, however, appears to be allowing the markets to dictate economic policy rather than the economy. Mike Moran of Daiwa Capital Markets America Inc. said, ?Market expectations have moved to such a degree that by not tapering they would be generating confusion in markets. They might as well start to do it.?

U.S. stock futures are mostly flat in early-morning trading. Evan Lucas of IG believes a  correction in the stock market  would be acceptable at this time. He said, ?There is a feeling that markets globally are gunning for a correction. It would be healthy and would take the 'twilight' concern out of the market as hedge fund managers scream about overvalue, bubbles and liquidity issues.? Historically, the Gold price has a mostly negative correlation to the stock market.

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

• Gold, $1,317.40, Down $2.40.
• Silver, $21.88, Down $0.15.

Closing Gold & Silver Market Report ? 9/16/2013

• Gold, $1,315.60, Up $5.00.
• Silver, $21.85, Up $0.11.

Morning Gold & Silver Market Report ? 9/16/2013

SUMMERS STEPS DOWN FROM FED CHAIRMAN RACE STOCK FUTURES SURGE

Wall Street is gearing up for what could prove to be a big day as  U.S. stock futures soar ahead of Monday?s opening bell. News that Lawrence Summers asked to have his name removed from contention in the race to replace Federal Reserve Chairman Ben Bernanke was a bullish signal for equities. Summers has been vocal about the idea of aggressively reducing the scale of quantitative easing, and his withdrawal now leaves his main competitor, Janet Yellen, as the clear front-runner to assume the office of Fed Chairman. ?Investors are saying that QE may not be as aggressively dialed back under Yellen, who is now the front-runner,? Walter ?Bucky? Hellwig, asset manager at B& T Wealth Management, said. ?QE is still a very important factor in the minds of investors and we can see this in the potential movement of the stock and bond markets.?

Precious Metals prices are up slightly during Morning trading following a sharp spike caused by the announcement that Lawrence Summers had chosen to step down from the race to become the next Fed chairman. Now investors will turn their focus back to the highly anticipated Federal Open Market Committee meeting set for Tuesday and Wednesday of this week. ?Summers is out of the race, Yellen is now the front-runner but with two days before the big Fed decision I don't think this is going to alter the tapering plans,? Societe Generale analyst Robin Bhar, said. ?Although the Fed will do anything to minimize the impact, it  will have to start tapering this month  otherwise it will be in for a lot of criticism.? With most analysts predicting a $10-$15 billion reduction from the current $85 billion in monthly asset purchases, Gold bugs and stock speculators alike will await the impact of a potential tapering announcement.

At 9:39 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,320.80, Up $10.20.
• Silver, $22.12, Up $0.38.

Gold traders turn bearish as Syria tensions ease

The metal is set for the first annual drop in 13 years

Gold traders are the most bearish since June as the threat of an imminent attack on Syria eased and speculation mounted the Federal Reserve will start curbing stimulus as the US economy improves.

Fifteen analysts surveyed by Bloomberg expect prices to fall next week, seven were bullish and three were neutral, the largest proportion of bears since June 21. Gold rose as much as 5.4 per cent since the alleged Aug 21 chemical attack in Syria that the US said the government should be held accountable for. Prices retreated to a four-week low on Friday as the US pursued a proposal that Syria surrender its chemical weapons.

Gold is set for the first annual drop in 13 years as faith in the metal as a store of value weakened and the Fed indicated it could buy fewer bonds. Goldman Sachs Group Inc said that tapering may spur more gold sales and Societe Generale SA advised selling bullion. Prices rose to a three-month high on Aug 28 on concern that strikes on Syria will disrupt Middle East oil supply and stoke inflation, increasing demand for gold as a hedge.

" With Syria there may be some volatility going forward but I doubt if it will have an impact unless you have huge escalation," said Georgette Boele, a commodities strategist at ABN Amro Group NV in Amsterdam. " If the Fed doesn't surprise majorly in one way or another and the sentiment improvement continues, there's no reason to be in gold."

Investment bank manager: ?Nobody knows what the f**k is going on??

http://www.sovereignman.com/finance/investment-bank-manager-nobody-knows-what-the-fk-is-going-on-12691/

Jim Grant - Very Bullish On Gold And No Fed Taper Next Week

Weekly Gold & Silver Market Recap ? 9/13/2013

SYRIAN CONFLICT, FUTURE FED MEETING STRESS METAL PRICES THROUGHOUT WEEK

As the week began, there were strong factors affecting Precious Metal prices such as the possibility of military action against Syria and the upcoming Federal Reserve meeting, which could provide a date to taper fiscal policy.  Monday prices remained flat as the market prepared for additional information regarding how the U.S. would approach Syria.    President Barack Obama attempted to encourage Americans to have confidence in the decision for military action against Syria, as addressed the nation Tuesday. Syrian President Bashar al-Assad delivered a direct threat through a CBS interview broadcast Monday confirming that consequences from a U.S. strike could provoke terrorist attacks. ?You should expect everything,? Assad said. ?Not necessarily from the government. The government is not the only player in this region. You have different parties, you have different factions, you have different ideology.?  Commerzbank shared their strong belief the Fed may announce a date to taper monetary policy as early as the next policy meeting. ?The idea that an exit from ?QE3? might begin next week is by no means off the agenda yet in the eyes of market participants, which is likely to make it difficult for Gold to rise above the $1,400 per troy ounce mark in any lasting fashion over the next few days,? Commerzbank commodity analysts wrote.

STRONGER U.S. DOLLAR MOVES PRECIOUS METALS

On Tuesday, Precious Metal prices dropped as the U.S. dollar began to trade higher after U.S. Secretary of State John Kerry stated if Syria gave up its chemical weapons, it could avoid a military strike. With tensions temporarily eased, Gold and Silver prices fell when Russia publicly supported the proposal,  which would be a ?breakthrough,?  according to President Barack Obama.

PRESIDENT ADDRESSES NATION, SOOTHES SYRIAN CONCERN

Gold experienced a 1.6 percent drop Tuesday as the pressure for military conflict diminished and Gold?s safe haven appeal slightly diminished. The Gold price traded mostly flat Wednesday while Silver, Platinum and Palladium prices gained some lost ground after President Barack Obama?s speech on Syria Tuesday evening. Obama said he would  explore the Russian-supported diplomatic solution  of Syria giving up its chemical weapons. Danske Bank analyst Christin Tuxen said, ?The fact that the Syrian situation is all back to a diplomatic solution is something that is not really supporting Gold or crude oil right now and the moves lower seen in the past sessions were merely due to that.?

POSITIVE ECONOMIC DATA PUSHES PRICES DOWN

Gold and Silver prices fell Thursday morning, as another round of uplifting economic data had most analysts convinced the  Federal Reserve will likely announce an initial reduction in the level of monetary easing. ?Today?s data is another nail on the coffin, and people expect the announcement on tapering to come next week,? Frank McGhee, head dealer at Integrated Brokerage Services LLC, said. Gold futures fell more than 2 percent as tapering expectations gave way to an  onslaught of selling once the price broke below key technical levels. Sharps Pixley CEO Ross Norman said, ?With things quieter on the Syria front and really not much to add on taper, the market is behaving quite technically just now and traders very much studying the charts.? Investors and analysts will continue to look to the next Fed policy meeting to see if Gold can hold above new support levels should an announcement of asset purchase tapering be declared.

DATA WATCHING CONTINUES TO PROVIDE PRESSURE

Precious Metals prices continued their downward trend Friday. Gold was down 5.4 percent for the week and suffered its worst week since June. Heavy selling linked to quantitative easing expectations and the situation in Syria affected prices and many believe the  Federal Reserve?s next chairman announcement will also affect prices.  Managing director of IDEAglobal, Mike Gallagher, said, ?In the coming months given that the new Fed chairman starts in January, the [former Treasury Secretary Lawrence] Summers effect, if it is announced, could be as dominant (as the Fed's tapering decision).?

At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,329.60, Down $3.00.
• Silver, $22.31, Up $0.14.

Mid-Day Gold & Silver Market Report ? 9/13/2013

DATA WATCHING CONTINUES TO PROVIDE PRESSURE

Precious Metals prices continue their downward trend through mid-day trading.  Gold is down 5.4 percent for the week and suffered its worst week since June.  Heavy selling linked to quantitative easing expectations and the situation in Syria have affected prices and many believe the  Federal Reserve?s next chairman announcement will also affect prices.  Managing director of IDEAglobal, Mike Gallagher, said, ?In the coming months given that the new Fed chairman starts in January, the [former Treasury Secretary Lawrence] Summers effect, if it is announced, could be as dominant (as the Fed's tapering decision).?

Data released Friday showed U.S. consumer sentiment in September hit a five month low on concerns that higher interest rates will slow down the overall growth of the economy and put a damper on the housing market. With a solution still being worked out in Syria and the Federal Reserve still data watching, many economists are  beginning to express concern  over recent economic data.  ?This is not a good report. It is very obvious that Americans are still cautious and their mood has soured recently,? IHS Global Insight director of consumer economics Chris Christopher Jr. said.  The uncertainty in today?s markets could have positive effect on Gold.

At 1:20 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,311.10, Down $21.50.
• Silver, $21.72, Down $0.46.

Morning Gold & Silver Market Report ? 9/13/2013

INVESTORS AWAIT FED MEETING

U.S. stock futures point to a moderately higher open for Wall Street after  the release of lower than expected retail sales data. Investors  seem to be holding firm  on positions ahead of next week?s U.S. Federal Reserve meeting. Spreadex financial sales trader Max Cohen said, ?With the Federal Reserve meeting next week to discuss potential reductions to monthly bond purchases, and with developments in Syria moving along at a snail?s pace, it is understandable that investors are tempted to hold fire for the next week or so.?

The Gold price pared losses after the economic release this morning, and  many analysts believe the yellow metal will find support at the $1,300 per ounce level. It appears that an expectation for quantitative easing tapering is being priced into the market ahead of next week?s Fed meeting, but a Hong Kong-based Gold dealer told CNBC that support is coming from elsewhere. The dealer said, ?At current price levels, we can see some physical buying interest from local buyers in Hong Kong and China. Both jewelers and retail investors are coming to buy. It looks like we are trading on the downside but right now, we can see buying interest on the physical side supporting the market.?

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

• Gold, $1,322.00, Down $10.60.
• Silver, $21.97, Down $0.20.

Closing Gold & Silver Market Report ? 9/12/2013

• Gold, $1,322.70, Down $43.10.
• Silver, $21.78, Down $1.42.

Morning Gold & Silver Market Report ? 9/12/2013

POSITIVE ECONOMIC REPORTS OPEN DOOR FOR TAPERING

Gold and Silver prices fell this morning, with the former reaching a four week low, even with no new developments on the Syrian situation or quantitative easing tapering. Some analysts, such as Rhona O?Connell of Thomson Reuters GFMS, believe that  tapering has already been priced into the market, though ?that is not to say that you won't be getting a bit of a wobble as of when it is announced.? A slew of economic data is due tomorrow, and many analysts believe that strong reports would ?seal the case for a reduction in monetary stimulus by the Fed in September,? as ABN Amro said in a note.

Stock futures are flat this morning. U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov are meeting in Geneva today to discuss Syria?s surrender of chemical weapons. The potential diplomatic solution has caused investors to be cautious not to overexpose themselves in a volatile situation. The weekly jobless claims report was better than expected, though the report was incomplete as two states did not process all the claims received.

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

• Gold, $1,329.90, Down $36.00.
• Silver, $22.15, Down $1.04.

Closing Gold & Silver Market Report ? 9/11/2013

• Gold, $1,367.50, Up $1.50.
• Silver, $23.26, Up $0.22.

Morning Gold & Silver Market Report -- 9/11/2013

GOLD TREADS WATER AFTER POSSIBLE SYRIAN RESOLUTION

The Gold price is trading mostly flat while Silver, Platinum and Palladium prices are gaining ground after U.S. President Barack Obama?s speech on Syria yesterday. Obama said he wouldexplore the Russian-supported diplomatic solution  of Syria giving up its chemical weapons. Danske Bank analyst Christin Tuxen said, ?The fact that the Syrian situation is all back to a diplomatic solution is something that is not really supporting Gold or crude oil right now and the moves lower seen in the past sessions were merely due to that.?

U.S. stock futures are pointing toward a lower open on Wall Street this morning. Obama?s speech was part of the reason, but it seems that  many investors are now looking mainly at next week?s U.S. Federal Reserve meeting  and whether a decision to taper the quantitative easing program will be made. Stephen Pope of Spotlight Investing said, ?Looking at the schedule of economic and Treasury auctions, I see little that would outweigh the sense of waiting for the [Federal Open Market Committee] communiqué.?

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

• Gold, $1,363.70, Down $2.40.
• Silver, $23.10, Up $0.06.

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