Closing Gold & Silver Market Report – 8/20/2013
GOLD MOMENTUM CONTINUES; MARKET HOPES FED MINUTES PROVIDE CLARITY
Gold, better known as an alternative investment for some, continued to trend upwards for the fourth time in five sessions due to a weaker dollar. The market is patiently waiting for the Federal Reserve’s Federal Open Market Committee meeting minutes, which will be released Wednesday and could possibly provide more insight into the Fed’s plans to taper fiscal policy. The speculation of when the Fed will cut back its monthly bond buying program has been a key topic, and the majority of investors believe it may be as soon as September. Many expect the minutes to confirm the forecasted date.
Precious Metals are not the only commodity looking forward to the release of the minutes from the Fed’s July meeting. The financial market will be watching for any key clues that indicate a timeframe of when to expect the cut-back of monetary easing. Avery Shenfeld, chief economist at CIBC World Markets, believes that the Fed presidents from Chicago, St. Louis and Atlanta provided insight into the internal debate at the central bank over whether fiscal policy is ready to be tapered. “We know a lot about what they think individually. I can’t see how the minutes are going to add clarity,” he said.
At 5:12 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,372.40, Up $4.70.
- Silver, $23.08, Down $0.17.
- Platinum, $1,520.50, Up $10.50.
- Palladium, $749.90, Down $4.50.
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