Morning Gold & Silver Market Report – 9/16/2013
SUMMERS STEPS DOWN FROM FED CHAIRMAN RACE; STOCK FUTURES SURGE
Wall Street is gearing up for what could prove to be a big day as U.S. stock futures soar ahead of Monday’s opening bell. News that Lawrence Summers asked to have his name removed from contention in the race to replace Federal Reserve Chairman Ben Bernanke was a bullish signal for equities. Summers has been vocal about the idea of aggressively reducing the scale of quantitative easing, and his withdrawal now leaves his main competitor, Janet Yellen, as the clear front-runner to assume the office of Fed Chairman. “Investors are saying that QE may not be as aggressively dialed back under Yellen, who is now the front-runner,” Walter “Bucky” Hellwig, asset manager at B&T Wealth Management, said. “QE is still a very important factor in the minds of investors and we can see this in the potential movement of the stock and bond markets.”
Precious Metals prices are up slightly during Morning trading following a sharp spike caused by the announcement that Lawrence Summers had chosen to step down from the race to become the next Fed chairman. Now investors will turn their focus back to the highly anticipated Federal Open Market Committee meeting set for Tuesday and Wednesday of this week. “Summers is out of the race, Yellen is now the front-runner but with two days before the big Fed decision I don't think this is going to alter the tapering plans,” Societe Generale analyst Robin Bhar, said. “Although the Fed will do anything to minimize the impact, it will have to start tapering this month otherwise it will be in for a lot of criticism.” With most analysts predicting a $10-$15 billion reduction from the current $85 billion in monthly asset purchases, Gold bugs and stock speculators alike will await the impact of a potential tapering announcement.
At 9:39 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,320.80, Up $10.20.
- Silver, $22.12, Up $0.38.
- Platinum, $1,450.90, Up $5.40.
- Palladium, $709.30, Up $11.20.
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