Closing Gold & Silver Market Report – 1/28/2014
STOCK RALLY DEPRESSES GOLD AHEAD OF FOMC CONCLUSION
The Gold price dipped for a second straight session as stronger equities and trepidation ahead of the conclusion of tomorrow’s Federal Open Market Committee (FOMC) meeting pushed investors away from Gold. The mild dip in Precious Metals prices today reflects investor sentiment that believes the Fed will announce another limited reduction in the scale of monetary stimulus measures. Even if another taper is announced tomorrow, many analysts and short-term traders believe the scale-down in volume of monthly asset purchases is already priced into markets. However, “Most physical buyers will ignore the noise and focus on the fact that the Fed’s monetary policies, along with most central banks in the world, remain extraordinarily accommodative even after the recent $10 billion taper,” Mark O’Byrne, executive director at GoldCore, said. “They are likely to continue accumulating until they see an actual, real tightening in monetary policies and an actual end to quantitative easing.”
Strong earnings figures helped influence equities today as the Dow Jones Industrial Average was able to break upward following five sessions of losses. "Earnings growth is not overwhelming, but enough to propel us forward," Chip Cobb, portfolio manager at BMT Asset Management, said. Equities investors will also eagerly await tomorrow’s Fed announcement as monetary easing measures have had a strong impact on stocks in recent years.
At 6:29 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,254.90, Up $2.10.
- Silver, $19.61, Up $0.06.
- Platinum, $1,411.90, Up $0.50.
- Palladium, $717.00, Down $0.50.
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