Watchful Morning Market Update for Nov 4

November 4th, 2013 by


Gold held firm in Asia overnight, and rose in Euro and New York trading. Silver and platinum saw moderate losses to recover to near Friday levels, while palladium held steady into European trading, then decided to recover recent losses, and is up strongly.

Asian markets are stepping lightly, ahead of the Chinese Communist Party policy-setting meeting on Saturday. The ever-increasing housing bubble in mainland China (and speculative bank loans fueling it) is a major concern, with some local governments imposing rule requiring a 60%-70% down payment, in an effort to quell speculators driving prices ever-higher.

Also in China, the service sector PMI hit a 14-month high of 56.3, which is an encouraging sign for a government eager to grow domestic demand.

In Europe, the Euro Stoxx 600 hit a five-YEAR high on hopes of an ECB rate cut, and the economic data out of China. The Eurozone Markit PMI for October gained to a 51.3 from 51.1 in September. Barely above the “expansion” point, but it’s moving in the right direction. The Euro hit a six-week low in Asian trading over concerns about an ECB rate cut, but recovered slightly in Europe.

Speaking of currencies, the dollar is a bit softer today despite the weaker euro. Crude oil prices have stabilized, These are both supportive development for precious metals. Wall St. opened higher, but pared gains in early morning trading.

Labor tensions in the South African platinum fields have traders keeping a wary eye out. Mining companies say that they have enough stockpiled metal to weather a strike for a couple of weeks. Longer than that, we should begin seeing an upward pressure on prices.

Between the Chinese policy meetings, a large number of U.S. economic reports, and the developing situation in South Africa. traders are keeping a watchful eye on several things this week.

by Steven Cochran

Gainesville Coins Portfolio Tracker and Financial News