Mid-Day Gold & Silver Market Report – 8/7/2013
PRECIOUS METALS NOT SURE HOW TO REACT TO THE POSSIBILITY OF TAPERING MONETARY POLICY
Precious Metals are feeling the heat today as concern is growing that the U.S. Federal Reserve may begin tapering as early as next month. Due to the assumption of the cutback in fiscal policy, the Gold price traded lower this morning and has since had a nice bounce. The market became alarmed after Fed presidents’ comments this week confirming their belief that it is quite likely to see a reduced amount of monthly bond buying by the end of 2013. The next Fed meeting for a possible tapering announcement is set for September 17-18.
Italy received positive economic news today showing that they are on track for a strong recovery. Economists forecast that in the fourth quarter of 2013 the country’s GDP will return to growth. Federico Ghizzoni, the chief executive of Unicredit, Italy’s largest bank, said, “We believe that the fourth quarter this year will be the first quarter in Italy after many with a positive signal.” Better-than-expected exports have provided assistance in rebuilding business confidence in the economy and will hopefully place Italy in an improved financial situation.
At 1:17 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,286.20, Up $1.70.
- Silver, $19.60, Down $0.01.
- Platinum, $1,438.40, Up $9.60.
- Palladium, $724.60, Up $0.40.
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