Mid-Day Gold & Silver Market Report – 1/9/2013
GOLD PRICE ERASES GAINS DUE TO MONETARY EASING DISCUSSION
After yesterday’s increase in the Gold price, the market has moved lower. The slip in prices is due to the growing uncertainty of the United States Federal Reserve’s plan regarding its monetary easing policy. According to James West, portfolio adviser to the Midas Letter Opportunity Fund, there are two sides to the easing argument. He states are some who believe the easing will continue. “As far as Gold is concerned, the buy-side pressure is from investors who believe the rhetoric in the media concerning the prospect of [quantitative easing by the U.S. Federal Reserve] ending early is not credible,” West said. On the other side, “there are those who do believe that quantitative easing will come to an end as the economy improves,” he added. Whether or not monetary easing continues, it is most likely going to have an effect on the Precious Metals market just as it has in the past.
The European Central Bank is hard at work attempting to help improve the economic outlook in the region. At the head is Mario Draghi, and the ECB president is bringing a new outlook to the system. There are some members of the union that are pleased with the changes. “Draghi shared the portfolios very well,” Erkki Liikanen, central bank chief of Finland, said. However, others are not so thrilled. “The ECB is making itself a prisoner of politics,” former ECB policymaker Juergen Stark said. Draghi will continue to move forward while trying to keep all sides satisfied, which may be easier said than done.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,654.90, Down $9.30.
- Silver, $30.23, Down $0.27.
- Platinum, $1,598.00, Up $14.80.
- Palladium, $688.60, Up $19.80.
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