TWO-DAY FED MEETING STARTS TODAY
Economic data out of the United States today will be the major focus for investors, along with the start of a two-day Federal Open Market Committee meeting. United States stock futures are higher this morning, so it appears investors are awaiting good news to come from one of the two. Fawad Razaqzada of GFT Markets said, “It feels as if investors expect dovish comments from the Federal Reserve, although few expect an explicit statement saying that further stimulus is imminent.” In the past, quantitative easing has been extremely supportive for stocks and Gold.
Economic worries in the eurozone have been weighing on markets for some time now. Investing pro Pierre Lagrange said the European Central Bank’s long-term refinancing operation “was an extraordinary solution to the liquidity problem that we had prevailing in the banks, but it doesn’t address the underlying problem.” He said the underlying problems are at the sovereign level, and that banks need to be in a position to help with those issues.
Geopolitical issues seem to have taken a backseat to economic troubles lately, but they still exist. North Korea has nearly completed preparations for a nuclear test, something that has drawn massive international condemnation. China’s possible ties to North Korea’s recent failed rocket launch has other countries concerned, as well. Kim Young-soo, a professor at Sogang University in Seoul, South Korea, said, “China is like a chameleon toward North Korea. It says it objects to North Korea’s provocative acts, but it does not participate in punishing the North.”
At 9:06 a.m. (EDT), the APMEX precious metals spot prices were:
- Gold - $1,644.40 - Up $11.30.
- Silver - $31.03 - Up $0.43.
- Platinum - $1,554.60 - Down $0.70.
- Palladium - $676.10 - Up $4.20.
APMEX’S Account Managers now have extended hours and are here to serve you until 8 p.m. (EDT) Mondays through Thursdays, and until 6 p.m. (EDT) on Fridays! If you have any questions about investing in precious metals or would simply prefer to place you order by telephone, we are here to help.