Closing Gold & Silver Market Report – 9/17/2013
EYES LOCKED ON FOMC OUTCOME TO GAUGE MARKET FUTURE
The Gold price has dipped for the fifth time in the last six sessions as real inflation numbers continue to be lower than expected. “With less-than-expected growth in CPI numbers, the appeal of Gold as an inflation hedge is diminished,” Phil Streible, senior commodity broker at R.J. O’Brien & Associates, said. “Tomorrow’s extent of reduction in the stimulus will be very crucial for Gold prices.” However, following a decline that saw Gold drop 21 percent at its lowest point along with expectations for a subtle pull back in the level of monthly monetary injections by the Fed, the potential downside for Gold appears to be much more limited than the initial plunge in mid-April of this year. Investors will wait to see the reaction Precious Metals prices will have to less accommodative fiscal policy.
U.S. stocks are up today with the S&P 500 resting above 1,700 for the first time since early August. Last month, higher costs of medical care and housing were countered by lower gasoline prices to keep inflationary indicators low. With consumer prices rising lower than expected for the month of August, more pressure to begin tapering the Federal Reserve’s monetary easing program will be placed on officials currently meeting at the Federal Open Market Committee (FOMC) meeting. The FOMC will conclude tomorrow with investors, analysts and economists ready to digest the outcome and its potential impact on metals and equities markets.
At 5 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,312.50, Down $7.30.
- Silver, $21.78, Down $0.25.
- Platinum, $1,424.80, Down $17.40.
- Palladium, $703.70, Up $1.40.
APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.