Morning Gold & Silver Market Report – 9/17/2013
TAPERING SEEN ON HORIZON AS FED MEETING BEGINS
The Gold price is mostly flat and the Silver price is slightly lower ahead of the start of the U.S. Federal Reserve’s two-day policy meeting. Most economists expect the result of this meeting to be a small beginning to quantitative easing (QE) tapering. The central bank, however, appears to be allowing the markets to dictate economic policy rather than the economy. Mike Moran of Daiwa Capital Markets America Inc. said, “Market expectations have moved to such a degree that by not tapering they would be generating confusion in markets. They might as well start to do it.”
U.S. stock futures are mostly flat in early-morning trading. Evan Lucas of IG believes a correction in the stock market would be acceptable at this time. He said, “There is a feeling that markets globally are gunning for a correction. It would be healthy and would take the 'twilight' concern out of the market as hedge fund managers scream about overvalue, bubbles and liquidity issues.” Historically, the Gold price has a mostly negative correlation to the stock market.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,317.40, Down $2.40.
- Silver, $21.88, Down $0.15.
- Platinum, $1,437.50, Down $4.70.
- Palladium, $707.40, Up $2.40.
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