Morning Gold & Silver Market Report – 12/11/2013
MARKETWATCH’S LYNN: CENTRAL BANKS WILL ALWAYS PRINT MONEY
Precious Metals are mostly flat this morning, as investors continue to look forward to next week’s Federal Open Market Committee meeting. Many economists polled by Reuters believe the Fed will announce a tapering of its quantitative easing (QE) program starting in March, though it could begin sooner based on strong economic data. Macquarie analyst Matt Turner said, “The issue now is the Fed meeting next week, so anything that changes opinion about that could be important for Gold. The reason Gold rallies when they don't taper, even if you expect them to taper at the next meeting or the one after, is because each time they don't taper, it keeps open a possibility of QE continuing indefinitely, perhaps forever.
On that note, MarketWatch’s Matthew Lynn wrote a piece this morning proclaiming that central banks will always find a reason to continue easy monetary policy. Lynn wrote, “The reality is, they will keep moving the goal posts. Once you slash interest rates to zero, and start printing money, it is impossible to stop without doing huge damage to the economy.” He went on to give the United Kingdom as an example. When their economy improved much more rapidly than expected, the policymakers kept “moving the goal posts further,” and continued to print money.
At 9:12 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,261.80, Down $1.80.
- Silver, $20.42, Up $0.06.
- Platinum, $1,389.30, Down $1.40.
- Palladium, $741.80, Up $3.30.
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