Morning Gold & Silver Market Report – 8/9/2011
FOMC MEETING TO BRING NEWS OF QE3?
U.S. stock futures are pointing to big gains this morning, a day after the 6th-worst drop in the Dow in history. All eyes are once again on the Fed Open Markets Committee meeting today, as investors await news of another round of quantitative easing. The FOMC meeting was originally not expected to weigh on the markets, but after last week’s lackluster economic reports and the downgrade of the country’s credit rating by Standard & Poor’s, the story has changed. The poor performance on the stock market is not exclusive to the U.S., however. Global recession fears are growing as Asian and European stocks are also taking a beating.
Gold is sitting on a fresh record high amid big gains overnight. As the financial uncertainty around the world increases, investors are attracted to the safe-haven appeal of gold. Peter Hillyard of ANZ said, “The market could come off from here, but it’s headed in a northerly direction. From where we are now, you might think we could see some sort of pull-back. But I’m talking about a momentary thing, a pull-back like the loading of a gun, which then fires away.” UBS strategist Edel Tully said that “the ingredients are all in place for a stronger gold price, as the metal is not subject to the risk of intervention or quantitative easing.”
At 8:06 am (CT) the APMEX precious metals spot prices were:
- Gold - $1,749.60 – Up $34.40.
- Silver - $38.13 – Down $1.36.
- Platinum - $1,739.00 – Up $15.40.
- Palladium - $737.50 – Up $7.00.