Morning Gold & Silver Market Report – 1/27/2014
FED TAPER SPECULATION PULLS GOLD FROM TEN WEEK HIGH
The Gold price has eased this morning following overnight trading that saw Gold hit its highest level in ten weeks. Poorly performing global stocks were the central factor feeding the demand for Gold last Friday and early this morning. However, speculation looms that the Federal Reserve is prepared to announce another reduction in quantitative easing (QE) measures which pressuring the yellow metal today. "It seems a breakout to the 1300-1330 mark is on hold for now, but it depends on what happens with the Fed this week," Mitsubishi analyst Jonathan Butler, said. "The consensus is that there'll be a further round of $10 billion-a-month tapering. If there's anything less than that, Gold could move higher as speculators move in." The Fed’s two-day policy meeting is set to begin on Tuesday.
Following Friday’s session that saw a massive round of selling, U.S. equities look poised to move higher today. Corporate earnings and home sales data are central market motivators today. However, investors will be eagerly anticipating the post-Fed meeting press conference on Wednesday to hear whether or not QE will be tapered further, as is expected by many analysts. Some experts believe Friday’s tumble in U.S. stocks marks the beginning of a market correction that many have been expecting.
At 9:29 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,263.70, Down $3.10.
- Silver, $19.86, Up $0.05.
- Platinum, $1,422.50, Down $8.10.
- Palladium, $729.20, Down $5.60.
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