Closing Gold & Silver Market Report – 6/12/2013
MARKETS UNCLEAR ON U.S. FISCAL POLICY DIRECTION
Gold is on the rise today compared to the U.S. dollar, which has slipped against other foreign currencies. The market is anxiously waiting for next Wednesday’s policy statement from the U.S. Federal Reserve with predications that economic stimulus may be cut. Portfolio manager Robert Spina of the Spina Group at Morgan Stanley Wealth Management shared his thoughts on how the Fed may approach continuing or winding down quantitative easing. Spina said, “I don't see them tapering until the fourth quarter, the economy is still on edge, but I do see them starting to taper.”
U.S. stocks continued to drop today with growing concern over the future of the U.S. fiscal policy. The Federal Open Market Committee will hold a two day meeting beginning Tuesday, and the market already has a cynical outlook for the conference. “We literally spent the entire year without having three down days in a row, just grinding higher, and we never had more than a 3 percent decline up until May 22,” Art Hogan, market strategist at Lazard Capital Markets, said. Hogan was referring to how the stock market has reacted to Federal Reserve Chairman Ben Bernanke’s statement on May 22 when he suggested monetary policy would not be scaled back unless the job market showed sustainable improvement. “The FOMC and Ben Bernanke have introduced volatility into the market for the first time this year, so the introduction of volatility seems extreme to us, but that’s only because we spent the first five months without it,” Hogan added.
At 5:15 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,389.70, Up $10.70.
- Silver, $21.81, Up $0.04.
- Platinum, $1,481.60, Up $0.20.
- Palladium, $758.10, Up $5.70.
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