Morning Gold & Silver Market Report – 6/11/2013
BANK OF JAPAN’S POLICY DECISION PULLS DOWN MARKETS
Precious Metals are trading lower this morning after the Bank of Japan’s announcement that it would not extend its stimulus program. Whether the U.S. Federal Reserve will follow suit with tapering its quantitative easing program remains to be seen. Credit Agricole analyst Robin Bhar said, “The market is coming around to the view that the Fed will taper quantitative easing. The fact that the economy seems to be creating jobs, as we saw with the payrolls report on Friday, makes Fed tapering more likely than not.”
The impact of the Bank of Japan’s decision was also felt by markets around the world. Tracking global stocks, U.S. stock futures fell. Mike McCudden of Interactive Investor said, “Equity markets continue to push lower amid a wide range of disappointing factors. The Fed will call time on bond buying at some point, Chinese economic data is showing further signs of a slowdown, and the Bank of Japan continues to — in the mind of many traders — punch below its potential.” Henrik Drusebjerg of Nordea Bank added, “If we really should believe in equity markets going up from now, it’s extremely important that we see global growth…”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,370.90, Down $17.10.
- Silver, $21.65, Down $0.40.
- Platinum, $1,485.30, Down $23.10.
- Palladium, $762.10, Down $7.30.