Morning Gold & Silver Market Report – 6/17/2013
FOMC TO MEET; MARKETS SHOW POSITIVE START
U.S. stock futures are making a move upward Monday morning as investors look forward to this week’s Federal Open Market Committee (FOMC) meeting. The hope is that the meeting will shed enough light on the U.S. Federal Reserve’s plan for tapering that investors can relax. This week’s upcoming data includes a manufacturer’s report and a home builder’s index. Jim Reid, strategist at Deutsche Bank, said, “We suspect that this week (Fed Chairman Ben) Bernanke will continue to say tapering will happen at some point, could happen this year but will be data-dependent, and that we are still a long way off from removing the very easy policy stance the Fed has in place.”
As the market and U.S. dollar index’s rise in anticipation of the FOMC meeting, the Gold price is heading the other way. The Gold price had closed last week on a higher note on strong bullion demand, a drop in the U.S. stock market and rising tension in the Middle East. Today, investors are once again considering the actions the Fed may take. Any easing of bond-buying programs, raising the prospect of future rate tightening, is seen as unfavorable for Gold. Rising rates also raise the opportunity cost for holding a Precious Metal that has no interest rate.
At 9:02 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,385.80, Down $3.80.
- Silver, $21.91, Down $0.17.
- Platinum, $1,444.70, Down $4.20.
- Palladium, $721.20, Down $10.50.
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