INVESTORS AWAIT FED ANNOUNCEMENT; CHINA’S ECONOMY REQUIRES EASING
Gold is stable for the day as the market is eager to know whether the Federal Reserve will push out further easing for the American economy or continue to sit on the sideline. Not only are investors patiently awaiting the news, but so are expert market watchers, including some at Goldman Sachs who predict the chances of QE3 being announced are greater than 50 percent. Other professionals include Barclays, UBS and JPMorgan, which all have forecasted further stimulus for the country.
Chinese Premier Wen Jiabao indicated yesterday at the World Economic Forum that China needs additional fiscal and monetary policy in order to sustain growth. “Be it monetary or fiscal, we still have ample strength,” Jiabao said. The government has 100 billion yuan ($16 billion) in a fiscal stabilization fund and “we will appropriately use that for preemptive policy and fine-tuning to propel stable economic growth.” The goal is to prevent economic growth in China from dropping below the 7.5 percent target set in March, which would be the lowest percentage since 1990.
At 5:03 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1733.10, Up $2.30.
- Silver, $33.51, Down $0.12.
- Platinum, $1,607.20, Up $2.40.
- Palladium, $670.00, Down $2.80.
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