Mid-Day Gold & Silver Market Report – 7/29/2013
FED MEETING LOOMS; GOLD GAINS GROUND
Precious Metals prices have continued their climb higher in morning trading as investors await the Federal Open Market Committee meeting later this week. Intesa Sanpaolo economist Giovanna Mossetti wrote that the Fed should “remain markedly dovish [as they have previously announced that] monetary policy must remain accommodative for an extended period, and the gradual tapering of purchases will not imply the beginning of a restriction, but rather ongoing stimulus at a slower pace.”
Speculation has surrounded the end of Federal Reserve Chairman Ben Bernanke’s time at the central bank, though the speculation has now turned to his successor. According to analysts, the markets are expecting it to be Janet Yellen, who has been in favor of the highly-accommodative monetary policy of recent Fed history. However, new reports have revealed that Treasury Secretary Larry Summers could be President Barack Obama’s choice, which could cause a shock to the markets. David Forrester of Macquarie Bank said, “If Summers is appointed, then we may see markets correct as tapering will be expected to happen more quickly. Yellen is a Fed insider and was part of the Federal Open Market Committee when QE [quantitative easing] was being implemented, while Summers questions the efficacy of QE.”
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,331.30, Up $7.40.
- Silver, $19.96, Up $0.11.
- Platinum, $1,446.50, Up $22.70.
- Palladium, $746.00, Up $20.50.
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