Mid-Day Gold & Silver Market Report – 2/22/2013
FED UNDECIDED ON QE POLICY; GOLD LEVELING OFF?
St. Louis Fed President James Bullard told CNBC Friday that the Federal Reserve’s “very aggressive” easy money policy is going to stay that way. He is even quoted as saying, “This is a monetary policy that packs a punch.” Bullard is a voting member of the Federal Open Market Committee (FOMC). The FOMC released minutes from its January meeting that said “many participants” expressed concerns about the risks of further asset purchases. Bullard, who is a self-confirmed optimist, says it is natural for the committee to be thinking about how to handle further asset purchases.
The Gold price is still fragile today, even after gaining some ground overnight when European stocks recovered from two-week lows. Gold fell to its seven month lows in part on worries that the Fed would slow its bond buying program. This program typically supports a strong Gold price. Mitsui Precious Metals analyst David Jollie said, “There's no doubt that the resolute sense of bullishness we've had in Gold over the last couple of years has weakened substantially. While there are still plenty of people who are bullish long-term, short-term sentiment is understandably more negative.” The global monetary policy of recent years has encouraged investors to seek refuge in Gold as a safe haven. We just have to wait and see how long it takes for investor confidence to return.
At 1 p.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,573.40, Down $6.70.
- Silver, $28.45, Down $0.32.
- Platinum, $1,610.60, Down $10.40.
- Palladium, $737.30, Up $2.70.
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