Closing Gold & Silver Market Report – 2/20/2013

QUANTITATIVE EASING TO END? MARKETS REACT TO FED MINUTES

As signs of U.S. economic improvement continue, the Federal Reserve has announced plans to convene in March to discuss the suitability of the $85 billion in asset purchases currently taking place each month. Many Fed committee members are concerned about the long-term risks of the current stimulus program causing speculation over probable alternatives to existing monetary easing measures. Factions have sprouted up inside the Fed committee as those who propose an end to quantitative easing (QE) are opposed by members who believe a premature end to QE could negatively impact the economy.

The Fed’s minutes from January, which indicated a potential halt of asset-buying, has caused Gold to tumble to its lowest level since last July. Today’s decline was the largest single-day drop in almost one year. QE has been instrumental in driving the Gold price up since its inception. The announcement that stimulus measures could come to an end has caused today’s drastic price drop for the yellow metal as the appeal of Gold as an inflationary hedge has been temporarily cut short. “The economic data is telling us that the economy is definitely showing signs of improvement,” Vedant Mimani, a portfolio manager at Atyant Capital Management Ltd., said. “A lot of sellers came in after Gold broke below the psychological $1,600 mark, and concern about the end of stimulus is adding further pressure.” Though economic improvements have led some to seek out riskier investments, many are looking to the recent price pull-back as an excellent buying opportunity as Gold has historically proven to be excellent portfolio insurance and an asset that is more resilient to volatility than stocks and other equities.

At 5 p.m. (EST), the APMEX Precious Metals spot prices were:

  • Gold, $1,565.00, Down $40.70.
  • Silver, $28.59, Down $0.91.
  • Platinum, $1,647.30, Down $51.20.
  • Palladium, $738.90, Down $26.30.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EST)! Or call us Fridays until 6 p.m. (EST)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

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Disclaimer:

APMEX’s ‘News and Commentaries’ provide our readers with a review of spot price activity and some of the factors that may be affecting the market for precious metals, three times during the trading day. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The "News and Commentaries" are not intended as a comprehensive discussion and there may be other factors that may be affecting the financial marketplace. These "News and Commentaries" are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, to purchase or to sell any precious metal product. All orders, all purchases and all sales, if any, are subject to the terms of the User Agreement and other applicable policies.

US Dollar Prices are in USD

Precious Metal Prices
4/17/2014 5:15:48 PM EST

Metal Bid Ask Change
Gold $1,294.60 $1,296.60 ($8.90)
Silver $19.60 $19.70 $0.02
Platinum $1,405.70 $1,415.70 ($22.10)
Palladium $792.10 $797.10 ($6.20)
4/17/2014 5:15:48 PM EST

Click here for Historical Charts*All Charts are in USD


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