Morning Gold & Silver Market Report
GOLD AWAITS FED MEETING
Every financial market is locked in on the two day U.S. Federal Reserve meeting that begins today. Precious Metals investors are looking for some type of direction on the future of the monetary easing program that has supported the market for years. Gold prices have been lower to start the week due to the idea that the Fed will announce the beginning of the end of the easing program. "It will either have to take a materially dovish statement and/or a significant scaling back in the Fed's economic projections for greater upside prospects (for Gold) to emerge," UBS said in a note.
Economist Nouriel Roubini, a.k.a. “Dr. Doom”, and political scientist Ian Bremmer have teamed up to give their outlook of recent Fed activity and it is not positive. “The weak real economy and job market, together with high debt ratios, suggest the need to exit monetary stimulus slowly. But a slow exit risks creating a credit and asset bubble as large as the previous one, if not larger," they wrote in a report published in Institutional Investor magazine. The two authors added that the slight improvement in the economy has given way to complacency. "Some believe that U.S. lawmakers can now afford to postpone tough choices, the Europeans will muddle through, China can smoothly rebalance its economy, and fires in the Middle East can simply burn themselves out. These are dangerous illusions," the authors said.
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1376.40, Down $8.70.
- Silver, $21.90, Up $0.02.
- Platinum, $1430.40, Down $6.40.
- Palladium, $705.40, Down $12.40.
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