QE3 ANNOUNCED, STARTS TOMORROW
Precious Metals prices spiked today after the announcement that a third round of quantitative easing (QE3) starts tomorrow. In a statement, the Federal Open Market Committee said, “The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions.” Of course, among the current conditions the Committee mentioned is a very stubborn 8 percent unemployment rate.
For QE3, the Fed will purchase mortgage-backed securities to the tune of $40 billion per month and monitor the results. This will be an “open-ended” bond-buying plan, so the end of the program will be decided at a later date when conditions improve. Stock markets also benefitted from the decision, and Gold and Silver erased losses and spiked heavily.
At 12:45 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,749.70, Up $16.90.
- Silver, $33.92, Up $0.62.
- Platinum, $1,670.00, Up $19.40.
- Palladium, $684.30, Up $5.00.
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