Morning Gold & Silver Market Report – 1/29/2014
METALS UP AHEAD OF FED DECISION
Precious Metals prices are adding to gains in early morning trading amid a volatile equities market. Saxo Bank’s head of research Ole Hansen said, “At the moment we're seeing quite a bit of churn in the S&P (500 stock index) ahead of the open – we're now down on the day after being up earlier. That may be what's just lending support (to Gold) at the moment.” The focus of the day is clearly on the end of the Federal Reserve’s two-day policy meeting, with an announcement expected this afternoon regarding the future of quantitative easing.
One economist, Bank of America Merrill Lynch’s Michael Hanson, believes the Fed will begin to distance itself from earlier statements regarding the importance of the unemployment rate. The central bank had said previously that low interest rates were here to stay “well past the time that the unemployment rate declines below 6.5 percent.” However, Hanson said, “There is a pretty good chance [the Fed could] drop the 6.5 percent threshold and replace it with some discussion of broad labor market indicators.”
At 9 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,269.20, Up $16.40.
- Silver, $19.95, Up $0.40.
- Platinum, $1,419.90, Up $9.00.
- Palladium, $720.10, Up $2.60.
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