Morning Gold & Silver Market Report – 6/14/2013
REPORT: BERNANKE TO EASE TAPERING FEARS
The Gold price rose in early-morning trading after a late report by the Wall Street Journal Thursday suggested that the Federal Reserve isn’t ready to end quantitative easing (QE). The report states that Fed Chairman Ben Bernanke will say that QE tapering doesn’t necessarily mean the end of QE. The QE program was only part of the ultra-loose monetary policy enacted by the Fed, with near-zero interest rates also very supportive of the Gold price. AMP Capital’s Shane Oliver wrote, “The Fed will only start to slow and then unwind its stimulus programs when it’s completely comfortable that the economic recovery is self-sustaining. [Bernanke will also likely stress that] interest rate hikes are still a long way away.”
U.S. stock futures are trading lower after the release of the Producer Price Index, which showed a larger-than-expected jump in prices. Investors continue to analyze economic data released throughout the week for clues on the Fed’s next move. Scott Redler of T3Live.com said, “I think the Fed watches the stock market more than many believe, and I think the reaction of the stock market is more important to them than they let on. I don’t think that they are technical analysts, but I do think that if we continue to hold the 50-day [average, in stocks,] over the next few weeks and resume the uptrend, they could start tapering in the September meeting, perhaps from $85 billion down to $50-60 billion.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,389.30, Up $9.50.
- Silver, $22.29, Up $0.59.
- Platinum, $1,450.90, Up $2.30.
- Palladium, $728.00, Down $3.00.
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