Mid-Day Gold & Silver Market Report
INVESTORS ANXIOUS AHEAD OF FOMC MEETINGS
The Gold price is down again Tuesday as anticipation builds for the announcement of a possible decline in monetary stimulus. The $85 billion in monthly mortgage backed securities and treasury debt have been perpetuated by the U.S. Federal Reserve to boost a lagging U.S. economy. Both Precious Metals and stocks have benefited greatly but the fundamental emphasis set forth by the Fed was to reach a specific reduction in domestic unemployment. A division exists between analysts who believe tapering is necessary and others who consider the discussion to be premature. Precious Metals have been trading in a tight range without any motivating factors to break out of current levels. Tomorrow could see more significant price action as all investors closely eye the outcome of the central bank’s Federal Open Market Committee (FOMC) meeting.
Stocks continue to rise today with the Dow Jones Industrial Average up more than 100 points midway through Tuesday’s trading session. Though equities entered turbulent waters after last month’s FOMC meeting that indicated potential QE tapering, no new information has been released that might change the expectations for tomorrow’s Fed meeting. Investors conveyed confidence that Fed Chairman Ben Bernanke would not deliver any news related to U.S. monetary policy that would be too jarring to markets as evidenced by today’s stock rally.
At 1 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1368.70, Down $16.40.
- Silver, $21.76, Down $0.12.
- Platinum, $1441.10, Up $4.30.
- Palladium, $707.60, Down $10.20.
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