Mid-Day Gold & Silver Market Report – 7/15/2013
RICKARDS: TAPERING WILL CAUSE FED TO REVERSE COURSE
The Gold price has continued its climb toward $1,300 per ounce in morning trading. Analysts at Commerzbank believe that the Gold price is “setting its sights once again on the psychologically important $1,300 mark. [The eurozone] debt crisis is still very much an omnipresent factor and could flare up again at any time. Gold could thus find itself in higher demand again as an alternative currency.”
Jim Rickards, managing director of Tangent Capital, believes that if the U.S. Federal Reserve begins to taper its quantitative easing program later this year, the central bank will quickly reverse course (by early 2014). He also believes that tapering will happen in September or not at all. “If they taper, it will be at [a Federal Open Market Committee] meeting with a press conference because the move is so significant the Fed will want the press conference to explain very carefully what they have done … However, if the Fed does taper in September, they will find the economy sinks much faster than expected and … they will have to increase asset purchases by early 2014.”
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,286.20, Up $5.60.
- Silver, $19.92, Up $0.04.
- Platinum, $1,422.20, Up $15.30.
- Palladium, $733.30, Up $9.40.
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