Closing Gold & Silver Market Report – 6/27/2013
HIGH EXPECTATIONS FOR GOLD; FED PRESIDENT BELIEVES QE WILL CONTINUE
As Gold drops, James Rickards, managing director at Tangent Capital, remains bullish on the yellow metal with an optimistic view for the near future. Richards believes the Federal Reserve will do the opposite of their proposal to pullback on fiscal policy and instead increase asset purchases as deflation is truly a concern for them. “In the next two months, the Fed is going to make it clear that they will not taper,” he predicts. “That's very bullish for Gold.” Tom McClellan, editor of the McClellan Market Report newsletter, is also a strong supporter for Gold. McClellan’s predicts at any time we could see a major Gold manufacturer begin cutting back its production or calling it quits. “We're getting down to the production price of Gold right now, and they won't continue producing Gold at that level for very long,” McClellan said.
William Dudley, president and chief executive officer of the Federal Reserve Bank of New York, advises that if future economic data does not meet the expectations that were discussed at last week’s policy meeting, the Fed may not keep their word on tapering monetary policy. “If labor market conditions and the economy's growth momentum were to be less favorable than in the FOMC's outlook — and this is what has happened in recent years — I would expect that the asset purchases would continue at a higher pace for longer,” Dudley said. Dudley has a perpetual vote with fiscal policy and agreed last week with Ben Bernanke’s timeframe to cut back on asset buying.
At 5 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1201.80, Down $30.00.
- Silver, $18.55, Down $0.16.
- Platinum, $1314.00, Up $8.30.
- Palladium, $645.10, Up $11.90.
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