Gold, Silver Slump as Markets Look Toward Fed Tapering
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Gold prices are lower again today and might slip again tomorrow as more and more positive economic data makes the case for Bernanke & Co. to start tapering its bond-buying process.
Thursday morning, the ISM said its non-manufacturing index rose to 58.6 percent in August, up from 56.0 percent reported the prior month and well beyond expectations calling for a reading of 55.0 percent.
Initial claims at 323,000 were 10,000 less than expected.
Earlier in the week, the ISM manufacturing index reading came in at 55.7 percent last month, from 53.6 percent in July and expectations of 53.6 percent.
U.S. retail auto sales for Ford, Chrysler, GM, Toyota, and Nissan, among others, were also solid last month, with many manufacturers having the best month seen in years.
Tomorrow, the Street is looking for nonfarm payroll additions of 177,000, up from 162,000 in July. Traders will be watching that and the unemployment rate reading at 8:30am ET as a catalyst heading into the latest FOMC meeting, which will happen September 17th and 18th.
Gold is down $20.3 to $1,369.7 per ounce on the Comex. The stronger U.S. dollar will make buying more expensive for other currencies.
SPDR Gold Shares (NYSE: GLD), iShares Gold Trust (NYSE: IAU), and iShares Silver Trust (NYSE: SLV) are on watch today.
Thursday morning, the ISM said its non-manufacturing index rose to 58.6 percent in August, up from 56.0 percent reported the prior month and well beyond expectations calling for a reading of 55.0 percent.
Initial claims at 323,000 were 10,000 less than expected.
Earlier in the week, the ISM manufacturing index reading came in at 55.7 percent last month, from 53.6 percent in July and expectations of 53.6 percent.
U.S. retail auto sales for Ford, Chrysler, GM, Toyota, and Nissan, among others, were also solid last month, with many manufacturers having the best month seen in years.
Tomorrow, the Street is looking for nonfarm payroll additions of 177,000, up from 162,000 in July. Traders will be watching that and the unemployment rate reading at 8:30am ET as a catalyst heading into the latest FOMC meeting, which will happen September 17th and 18th.
Gold is down $20.3 to $1,369.7 per ounce on the Comex. The stronger U.S. dollar will make buying more expensive for other currencies.
SPDR Gold Shares (NYSE: GLD), iShares Gold Trust (NYSE: IAU), and iShares Silver Trust (NYSE: SLV) are on watch today.
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