Midday Market Update Sept 5: Good News is Bad News for Gold - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Midday Market Update Sept 5: Good News is Bad News for Gold

blog | Published On by
Midday Market Update Sept 5: Good News is Bad News for Gold

Precious metals are selling off in late morning trading in New York, as a string of strong economic reports combine with news that South African gold mining companies are reaching individual deals with striking miner and the belief that unilateral U.S. military action against Syria will not happen until next week at earliest.

Gold had held over $1,390 an ounce for most of the time in overnight trading, and even saw a small improvement at the opening bell in New York. However, reports that first-time jobless claims last week declined by 9,000 to 323,000 newly unemployed boosted equities and started precious metals on a downward slide that would see sell stops triggered throughout the morning.

More good economic news came in throughout the morning, as the ISM service sector report posted a climb to 58.6, compared to 56.0 in July.  Factory orders were down, but not as much as analysts had feared. The ADP payroll report claims the private sector added 176,000 jobs for the month of July, reinforcing opinions that the official numbers tomorrow will show an increase. These reports have the market all but convinced that the Federal Reserve Open Market Committee will decide to reduce its $85 billion a month in bond purchases at its meeting in two weeks.

In other central bank action, the Bank of Japan, Bank of England, and European Central Bank all left their easy money policies in place at their meetings today. The appearance of an economic recovery in the leading industrialized nations, has bonds prices in Europe and the U.S. falling, with the yield on the 10-year Treasury bill closing in on 3%, at 2.95%.

 

by David Peterson

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.