Closing Gold & Silver Market Report – 7/10/2013
FED MINUTES SUGGEST FISCAL POLICY WILL CONTINUE
The minutes from the Federal Reserve’s June meeting affirmed many investors’ presumptions that officials prefer to see an improvement in the job market before tapering fiscal policy. “The Gold market is pleasantly surprised, and is rallying on the minutes,” Tom Power, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said. “The unemployment number is the key number that the Fed is watching, and with that still above 7.5 percent, investors think that easing is here to stay for some time.” Gold increased by 0.3 percent after the minutes were released, extending its gains to a third consecutive day.
Once the minutes of the Fed’s June meeting were released, there was a noticeable drop in U.S. stocks, government bonds and the dollar. The market is reacting to the mixed responses from state representatives that strongly believe the Federal Reserve is moving too quickly with cutting back on its bond buying program. “The market is moving away from its concerns about tapering and toward about the timing when [the Fed] will normalize interest rates and who will replace Bernanke,” Robbert Van Batenburg, director of market strategy at Newedge USA LLC in New York, said.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,264.10, Up $15.70.
- Silver, $19.53, Up $0.30.
- Platinum, $1,375.50, Up $6.90.
- Palladium, $715.50, Up $18.20.
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