Closing Gold & Silver Market Report – 3/13/2012
GOLD DROPS BELOW $1,700 PER OUNCE; NO QE3 SIGNS FROM FED
After today’s Federal Reserve meeting today came and went without any hints of future quantitative easing, the price of Gold declined significantly in afternoon trading, ending the day below $1,700 per ounce. Gold historically moves opposite the U.S. dollar, and with the dollar up after today’s Fed meeting, Gold experienced a corresponding drop. However, the Fed indicated during the meeting that the recent jump in energy costs is likely to increase inflation, which plays to Gold’s draw as a safe haven for investors. The Platinum price also was down in afternoon trading, while Silver and Palladium prices were up slightly at this writing.
The Federal Reserve’s Federal Open Market Committee (FOMC) meeting took place this afternoon, and again there were few indications of any Fed plans for another round of quantitative easing. According to the central bank, the U.S. economy is undergoing moderate expansion while still facing serious downside risks. Officials with the Fed said they expect rates will stay near zero for at least the next two years, citing continued high unemployment in the United States. After details from the FOMC meeting were released, precious metals prices dipped in afternoon trading, while Wall Street stocks held gains, and the dollar strengthened against the euro.
At 4:01 p.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,675.30 – Down $25.50.
- Silver - $33.47 - Up $0.03.
- Platinum - $1,688.60 - Down $8.10.
- Palladium - $706.10 – Up $1.90.