Morning Gold & Silver Market Report – 7/10/2013
FED MINUTES TO SHED MORE LIGHT ON QE TIMING
Precious Metals prices are on the rise this morning as investors await minutes from June’s Federal Open Market Committee meeting, scheduled for release at 2 p.m. (ET). Some analysts believe that the market has already “built-in” expectations that the Fed will begin tapering its quantitative easing (QE) program in September, so clues that tapering will begin in December or later could be bullish for the metal in the short term. Standard Bank analyst Marc Ground said, “I think there should not be anything that will surprise the market from the minutes, we should pretty much already know what is in them.”
U.S. stock futures are lower in anticipation of the Fed minutes, and Peter Cardillo of Rockwell Global Capital said, “If the minutes basically suggest the economy is mulling along continuing to slow at modest pace and that might put off the time limit in terms of trimming [the QE program], which is what the markets would like to see ... we’ll be at new highs for the S&P over the next day or two. That suggests the Fed may not be in such a hurry that markets have been anticipating. The bond market obviously has discounted that ... it’s a bit of a positive for equities, not a negative.”
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,256.10, Up $7.70.
- Silver, $19.35, Up $0.13.
- Platinum, $1,374.10, Up $5.50.
- Palladium, $710.00, Up $12.70.
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