Morning Gold & Silver Market Report -- 10/14/2013

GOLD RISES IN MORNING TRADING DOLLAR DOWNGRADED AGAIN

With political leaders in the U.S. failing to reach a deal on the government shutdown and upcoming debt ceiling issue,  Gold has seen a sharp increase in this morning?s trading.  The divide between Senate Democrats and Republicans continues to widen, with Democrats unwilling to agree to any deal that continues the automatic spending cuts known as sequestration.  CMC Markets UK senior sales trader Toby Morris said, ''Even with ?constructive discussions' on Sunday, no details have really been given about what that entails, leaving markets as confused as ever about what we are waiting for.''   Silver, Platinum and Palladium prices are up this morning as well.

Economic strategists are cutting U.S. dollar forecasts for the third month in a row in response to the budget fight in the U.S. Westpac Banking Corp and Credit Suisse Group AG, among other firms,  have reduced estimates by an average of 1.2 percent as compared to currencies such as the euro, pound and yen.  According to Andrew Milligan, head of global strategy at Standard Life Investments Ltd., faith in the dollar is being eroded by these repeated episodes of U.S. government dysfunction.   ''Lasting damage is being caused to the view that the U.S. currency is the reserve currency.  It encourages people not to hold so much in dollars and to hold slightly more in other currencies,'' Milligan said.  Historically, the value of Gold and other Precious Metals have shown a negative correlation to the value of the dollar.

At 9:23 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,285.90, Up $15.70.
• Silver, $21.56, Up $0.27.

Gold Market Report

Weekly Gold & Silver Market Report -- 10/11/2013

WEAKER DOLLAR BOOSTS GOLD FOR EARLY GAINS

On Monday, Gold benefited from a lower dollar as policymakers in Washington failed to reach a consensus on a budget bill. As the October 17 deadline for reaching the borrowing limit nears, investors and analysts await the potential for greater market volatility. The result of the budget impasse has been a partial  government shutdown that is weakening the economy and delaying the release of key economic reports. ''The whole story about the U.S. is clearly key for financial markets at the moment ...the general view on it is that a solution will be found and we will probably see a rebound in markets in general,'' Credit Suisse analyst Karim Cherif said. ''Sentiment remains hesitant towards Gold, which has been reflected in the market positioning,'' Barclays analysts said in a note. ''While the temporary U.S. government shutdown has not proved to be a positive driver for prices, the risk of a debt ceiling breach holds scope to spark interest given Gold's response in 2011.''

WHAT DOES THE CENTRAL BANK KNOW ABOUT GOLD THAT WE DON?T?

With Gold in the midst of its first bearish year in more than a decade, many economic experts and Gold bugs are currently  baffled by its recent price action. Since its peak in 2011, Gold reserves at central banks have lost more than $545 billion in value but the banks continue to pile it on. In 2012, central banks added 535 tons of Gold bullion and are expected to add another 350 tons this year. However, as policymakers continued the onslaught of buying, investor sentiment wavered after reaching its all-time high. Now, many wonder if central banks are continuing their tradition of buying when they should be selling or if they see long term volatility and the need for their own insurance policy in the form of Gold.

FOCUS REMAINS ON GOVERNMENT SHUTDOWN

On Tuesday, the U.S. government shutdown entered its eighth day with some  positive news finally emerging from Congress. Senate Democrats began looking ahead to the debt ceiling debate and the possibility of giving President Barack Obama the ability to raise the debt ceiling for a year. Henrik Drusebjerg of Nordea said, ''Everyone is focusing on the politicians, and last night we saw a slight improvement in negotiations among Republicans and Democrats. It's nothing close to a final solution, but still a slight improvement.''

ANALYSTS: FED COULD POSTPONE TAPERING

Both Gold and Silver prices traded lower Tuesday morning, possibly reacting to the uptick in U.S. stock futures. Mitsubishi analyst Jonathan Butler said, ''There is a realization that as difficult and serious this budgetary situation in the United States is, eventually a solution will be found and the country won't default. There is always the outside chance that this may happen and that may be what is providing a little bit of support to Gold but it's not really that convincing for many investors.'' That being said, Commerzbank analysts added, ''The [U.S. Federal Reserve] will probably postpone its retreat from quantitative easing, which could also help to push prices up.''

OBAMA NOMINATING BERNANKE'S SUCCESSOR PROVIDES SUPPORT TO U.S. DOLLAR

Precious Metals prices fell quickly Wednesday after the U.S. dollar rose from eight-month lows.The dollar reacted before and after President Barack Obama nominated Federal Reserve vice Chairwoman Janet Yellen  as current Fed Chairman Ben Bernanke's successor, ending some uncertainty in the markets. Peter Fertig of Quantitative Commodity Research said, ''A default of the U.S. government should be positive for Gold, because it would be the only safe haven U.S. investors would have. That Gold is not reacting so strongly to the developments in the United States is surprising.''

FEDERAL RESERVE MINUTES RELEASED

The minutes from September's Federal Reserve meeting were released Wednesday and it revealed that the decision to not taper the monthly bond-buying program was a difficult one. ''All members but one judged that it would be appropriate for the Committee to await more evidence that progress would be sustained before adjusting the pace of asset purchases,'' the minutes said. Apparently recent U.S. economic data is not indicating that the job and housing markets are moving toward a recovery. If the U.S. economy had shown improvement, the Federal Reserve would have chosen to cut back monetary policy as they previously announced.

DEBT CRISIS BEGINS TAKING CENTER STAGE

Gold prices lost momentum on Thursday as Democrats and Republicans were supposedly attempting to find a solution to the U.S. debt crisis.  As all eyes remained on Washington, U.S. stock prices moved upward and had the second-best session of the year. Danske Bank analyst Christin Tuxen said, ''Both Republicans and Democrats are starting to be  a little bit more willing to find a solution  and that's what is dragging Gold lower.''

POSSIBLE BUDGET DEALS PRESSURE GOLD

The U.S. dollar headed for its third straight day of gains Friday, all while  continuing to put pressure on the Gold price, which is headed for its second straight week of losses. This is most likely due to signs that Washington is close to reaching budget and debt ceiling deals. Michael Widmer of Bank of America Merrill Lynch said, ''You had a very short-lived move higher on the back of the debt ceiling talks but ? the market just discounts a lot of the bullish news at the moment, looking at the improving underlying economic picture.''

At 3:32 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,271.80, Down $27.10.
• Silver, $21.34, Down $0.59.

Morning Gold & Silver Market Report --- 10/11/2013

POSSIBLE BUDGET DEALS PRESSURE GOLD

The U.S. dollar is headed for its third straight day of gains and is  continuing to put pressure on the Gold price, which is headed for its second straight week of losses. This is most likely due to signs that Washington is close to reaching budget and debt ceiling deals. Michael Widmer of Bank of America Merrill Lynch said, ''You had a very short-lived move higher on the back of the debt ceiling talks but ? the market just discounts a lot of the bullish news at the moment, looking at the improving underlying economic picture.''

In speaking of recent stock market volatility, Wouter Sturkenboom of Russell Investment said, ''I think most people who were looking at this whole mess were expecting a pragmatic result -- they can?t go over the brink, they can?t go into default, as we were -- but none of us knew when and how it would happen. A lot of people had their finger on the trigger for the first sign of resolution.  It took less than I expected it would take, but that's how markets are these days.'' U.S. stock futures are pointing to a higher open for Wall Street.

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

• Gold, $1,270.30, Down $28.60.
• Silver, $21.28, Down $0.65.

Closing Gold & Silver Market Report ? 10/10/2013

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• Gold, $1,288.40, Down $20.80.
• Silver, $21.71, Down $0.21.

Morning Gold & Silver Market Report  -- 10/10/2013

• Gold, $1,301.40, Down $7.90.
• Silver, $21.97, Up $0.05.

Closing Gold & Silver Market Report  -- 10/9/2013

• Gold, $1,309.00, Down $17.60.
• Silver, $21.92, Down $0.55.

Morning Gold & Silver Market Report -- 10/9/2013

OBAMA TO NOMINATE BERNANKE?S SUCCESSOR

Precious Metals prices fell this morning after the U.S. dollar rose from eight-month lows.  The dollar is said to be reacting to reports  that President Barack Obama will nominate Federal Reserve Vice Chairwoman Janet Yellen as current Fed Chairman Ben Bernanke?s successor, ending some uncertainty in the markets. Peter Fertig of Quantitative Commodity Research said, ''A default of the U.S. government should be positive for Gold, because it would be the only safe haven U.S. investors would have. That Gold is not reacting so strongly to the developments in the United States is surprising.''

The dollar's increase had a positive impact on U.S. stock futures, which are pointing toward a higher open this morning. Minutes from the recent Federal Reserve meeting are due for release this afternoon, though most of the  focus is still on the U.S. government shutdown. David Thebault of Global Equities said, ''Politicians are putting markets under pressure, and now the U.S. is on the road to have its rating cut or default.'' The debt ceiling debate in 2011 caused ratings agency Standard & Poor?s to downgrade the country's sovereign credit rating, which boosted the Gold price to an all-time high.

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

• Gold, $1,309.20, Down $17.40.
• Silver, $21.99, Down $0.48.

Closing Gold & Silver Market Reports  -- 10/8/2013

• Gold, $1,321.10, Down $6.00.
• Silver, $22.35, Down $0.07.