Closing Gold & Silver Market Report – 6/18/2013
STOCKS, METALS CONTRASTING BEFORE FOMC MEETING
Gold and Silver prices fell by approximately one percent today as the focus has been the upcoming Federal Open Market Committee (FOMC) meeting. James Steel of HSBC said, “Should the FOMC not come any closer to giving greater clarification on the asset-buying program, then the Gold market could rally and investors who have been shorting Gold in anticipation of a Fed move away from QE [quantitative easing] may have to cover. This could prompt a challenge of the $1,400 an ounce level.” Peter Fertig of Quantitative Commodity Research added, “Gold is trading weaker on the fear that the FOMC may reduce the volume (of quantitative easing), but if anything they will be scaling out gradually, there will not be an abrupt end to QE.”
Contrary to what many analysts believe is happening in the Precious Metals market, Hugh Johnson of Hugh Johnson Advisors believes that stocks are rallying “in anticipation that [U.S. Federal Reserve Chairman Ben] Bernanke is not going to taper soon. If he does what we think, the market is going to give up some ground, because what he is going to say is going to be fully priced into the market. When you anticipate good news, you buy stocks; when you finally get the good news, you sell.”
At 5:15 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,369.60, Down $15.50.
- Silver, $21.72, Down $0.16.
- Platinum, $1,443.40, Up $6.60.
- Palladium, $711.10, Down $6.80.
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