Morning Gold & Silver Market Report – 7/11/2013
BERNANKE: FED SHOULD BE MORE ACCOMMODATIVE
Precious Metals prices jumped Wednesday afternoon and have continued to climb today, with Gold nearing $1,300 and Silver jumping above the $20 barrier. After the release of the minutes from June’s Federal Open Market Committee meeting, U.S. Federal Reserve chairman Ben Bernanke spoke and revealed that the Fed should be more accommodative, which boosted the safe haven appeal of Gold. Analysts at Commerzbank wrote, “We presume that the strong reaction of the Precious Metal markets is also related to the fact that investors believe that the Fed’s actions and attitude do not differ significantly from those” of the highly accommodative European Central Bank or Bank of Japan. “This is likely to prompt investors to increasingly seek a ‘safe haven’ and a currency that is independent of the central banks, thus again luring in buyers of Gold.”
The minutes outlined clearly what the committee believed Bernanke should convey regarding tapering the quantitative easing program, and a key element was reminding the public that “decisions about asset purchases and other policy tools would continue to be dependent on the Committee's ongoing assessment of the economic outlook.” With Wednesday’s announcement that the Fed should continue with low interest rates, it appears the economic data released since the June meeting didn’t meet the committee’s expectations.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,287.20, Up $37.30.
- Silver, $20.17, Up $0.91.
- Platinum, $1,403.40, Up $35.30.
- Palladium, $723.50, Up $9.70.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! If you have any questions about investing in precious metals or simply would prefer to place your order by telephone, we are here to help.