MORE STIMULUS EXPECTED FROM FED MEETING
The Gold price is relatively flat this morning as the Federal Reserve kicks off a meeting that is to last through tomorrow. Many economists are expecting the Fed to announce larger monthly bond purchases under the latest round of quantitative easing (QE). Mitsubishi analyst Matthew Turner said, “If the Fed comes out with $45 billion of bond purchases, it could be the spark we need for another Gold rally. Previous episodes of QE have seen a Gold rally. The policy should increase inflationary expectations, and Gold acts as a hedge against inflation.”
Talks between the White House and Congressional Republicans have reportedly taken a turn for the better, as sources say significant progress has been made with regards to the discussion on the fiscal cliff. In a recent CNBC survey, however, the vast majority of the 48 economists polled identified either tax/regulatory policies or the fiscal cliff as the biggest threat to the U.S. economy. Kevin Giddis of Raymond James/Morgan Keegan said, “The fiscal cliff conversation has edged its way to the ‘head of the class’ when considering the possibility of a new recession.”
At 9 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,713.50, Down $0.90.
- Silver, $33.12, Down $0.24.
- Platinum, $1,634.30, Up $10.10.
- Palladium, $696.20, Down $8.60.
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