Closing Gold & Silver Market Report – 7/17/2013
QE TALKS WEIGH ON GOLD; PAULSON CONTINUES TO TOUT GOLD
The Gold price has settled lower today as U.S. Federal Reserve Chairman Ben Bernanke confirmed plans to begin scaling back asset purchases of $85 billion per month, though he left some wiggle room by stating that the tapering of quantitative easing (QE) could be altered following change in the economic climate. Bernanke has stated that he plans to begin reducing the current volume of bond purchases by year-end and completely dissolve the program by mid-2014. “The market is woken up to the fact that we are seeing the end of tapering and the potential end of QE, and that takes the brush off the rose,” Integrated Brokerage Services’ head Precious Metals trader Frank McGhee said.
Retail investors continue to await indicators of a new trajectory for the future of Gold. The yellow metal is down roughly 25 percent year-to-date and the QE program that caused an onslaught of buying from investors who feared hyper-inflation appears to be near the end of its tenure. Though inflation is currently below 2 percent, legendary hedge fund manager and Gold bug John Paulson is not wavering in his outlook for the metal. Paulson claims that, “[over time], as we see the economy grow, credit expand and inflation or the indicators of inflation start to rise, I think the demand for Gold will start to increase again.” As the short term for Gold remains bearish, investors interested in a long-term store of wealth and safeguard against dollar devaluation continue to acquire Precious Metals as portfolio insurance.
At 5:02 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,277.70, Down $15.70.
- Silver, $19.39, Down $0.64.
- Platinum, $1,408.00, Down $17.10.
- Palladium, $735.00, Down $1.60.
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