Mid-Day Gold & Silver Market Report – 12/11/2012

GOLD SLIGHTLY DOWN; MARKET EXPECTS BOOST FROM FEDERAL RESERVE

The Federal Reserve is expected to announce its financial policy decision tomorrow after meeting both Tuesday and Wednesday. Analysts suggest the Fed may state a new bond purchasing program that could cause an increase in U.S. money printing. “The expectation is that the Fed will augment its asset purchases,” Sonny Tahiliani, managing director of MacroMoves in New York, said. “We'd expect this to bolster Gold, but between year-end selling and the [U.S.] fiscal-cliff stalemate, the effect could be muted for now.”

U.S. stocks jumped this morning as German investor confidence rose due to a more positive economic outlook for Europe and progress from politicians properly handling the fiscal cliff. “Our forecast is that the U.S. will avoid a recession and experience lumbering but measurably positive growth, while China is going to contribute to global growth which will help energy stocks,” Stephen Wood, the New York-based chief market strategist for North America for Russell Investments, which oversees $159.1 billion, said in a phone interview.

At 1 p.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,709.40, Down $5.00
• Silver, $32.97, Down $0.39.
• Platinum, $1,639.60, Up $15.30
• Palladium, $697.00, Down $7.80

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