Closing Gold & Silver Market Report – 10/24/2012
FED ANNOUNCEMENT: QE3 WILL CONTINUE
U.S. stocks dropped to a seven-week low following the end of a two-day Federal Reserve meeting to discuss economic strategy going forward. Few are surprised to learn that plans for indefinite monetary easing and near-zero interest rates until 2015 remain unchanged. "At first glance I don't see any surprises at all," said David Sloan, an economist at 4CAST in New York. "It seems like we had a big meeting last time and this time they have maintained their tone." The Fed remains concerned that their policies are necessary to help boost a job market that would not be strong enough without it. "They made the strategic decisions back in September and now they are fully in," said Adolfo Laurenti, an economist from Mesirow Financial. "There is really no easy way out, for quite some time."
Gold pulled back once again as the news of further stimulus boosted the dollar. The metal remains slightly above $1,700 today as many investors await the upcoming presidential election to decide what strategic moves they need to make in allocating their personal portfolios. Though the market has slipped downward following highs of near $1,800 last month, Federal Reserve policy continues to cast a positive outlook on Gold in the long-term. "The U.S. Federal Reserve, through multiple initiatives and actions, consequently has become Gold’s best friend," Jeffrey Wright and Richard Hastings, strategists at GHS, wrote in a report Wednesday. Wright and Hastings added that "the commitment from the Federal Reserve to maintain an accommodative policy until 2015 [...] provides a strong foundation for what we expect will be continued gains in Gold prices into 2014."
At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1702.60, Down $6.80.
- Silver, $31.79, Down $0.03.
- Platinum, $1559.50, Down $13.60.
- Palladium, $596.60, Up $1.80.
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