Mid-Day Gold & Silver Market Report – 8/21/2013
GOLD, STOCKS SOFTEN AS INVESTORS AWAIT FED MINUTES
Investors eagerly await July’s Federal Open Market Committee (FOMC) minutes today, causing Gold futures to fall slightly ahead the release this afternoon. “There’s some hesitation in the market ahead of the Fed minutes,” David Meger, director of metal trading at Vision Financial Markets, said. “The Fed is teetering on the fence between wanting to do some type of tapering and not wanting to upset the apple cart, so it’s not surprising to see consolidation ahead of the news.” Gold has fallen 18 percent this year with assets inside Gold-backed exchange-traded funds down 26 percent, setting the metal up to end the its 12 year winning streak. Investors will await today’s Fed minutes and forthcoming economic news to see how Precious Metals and equities markets will perform through the end of 2013.
U.S. stocks are also down today ahead of the Fed minutes, sending the Dow Jones Industrial Average into the red for the sixth straight session. Since its all-time high finish on August 2, the Dow has fallen almost 700 points and now rests below the key psychological level of 15,000. As volume remains low during the summer months, traders and investors are awaiting news that could potentially activate some significant price movement. “The only thing that might prompt some price movement is if policymakers deviate in any way from the previous minutes and give more clarity about the timing and constitution of a possible tapering program,” Michael Hewson, senior market analyst at CMC markets, said.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,371.40, Down $3.20.
- Silver, $23.11, Down $0.05.
- Platinum, $1,521.80, Down $4.70.
- Palladium, $748.50, Down $2.60.
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