Mid-Day Gold & Silver Market Report – 6/17/2013
FOMC ANTICIPATION WEIGHS ON GOLD, BOOSTS STOCKS
The Gold price has fallen lower Monday as positions waver ahead of the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) meeting. Recent speculation that the Fed will begin to reduce the scale of monetary stimulus has pulled Gold down. The program was formerly an integral motivator in driving Precious Metals prices higher. Though certain Fed officials have not been shy in expressing their desire to begin tapering the $85 billion in monthly bond purchases, many analysts are still being vocal in their opposition to the reduction. “The Fed quitting its stimulus programs might be feasible if the economy were truly on a massive recovery and inflation were rising,” Springer Financial Advisors President Keith Springer said. “However, tame inflation and lower global growth estimates from the International Monetary Fund indicate the world’s central banks won’t pull back anytime soon.”
Following a week that saw equities drop more than 1 percent, stocks are gaining abruptly today ahead of expectations for the outcome of this week’s FOMC meeting. Over the last few years, investors and traders alike remain intently focused each time Fed Chairman Ben Bernanke is set to discuss the Fed’s assessment of the economy and its strategy going forward. Regarding this week’s Fed meeting, Daiwa Capital Markets’s Chris Scicluna wrote, “While policy is obviously widely expected to be left unchanged at this meeting, all eyes will turn to the post-meeting press conference where Bernanke will unveil the Fed's latest economic projections — relevant for the timing of the first rate hike — and hopefully provide greater clarity on the likely time frame for tapering asset purchases.”
At 1:04 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,385.30, Down $4.30.
- Silver, $21.89, Down $0.18.
- Platinum, $1,436.00, Down $12.90.
- Palladium, $716.50, Down $15.20.
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