Mid-Day Gold & Silver Market Report – 9/19/2013
GOLD HIGHER FOLLOWING BERNANKE’S STEADFAST COMMITMENT TO QE
Gold remains up today following Federal Reserve Chairman Ben Bernanke’s announcement that the current scale of monetary easing will not be reduced. “Wow — just as it seems that the Fed had the markets comfortable with tapering, they pull the rug out from everyone,” Richard Gotterer, managing director and senior financial adviser at Wescott Financial Advisory, said. “Now the question is will the Fed prepare the markets for tapering come October, December or wait for the new FOMC chair to control the process?” Technical indicators still show Gold under downward pressure, and major Wall Street firms like Goldman Sachs continue to forecast lower long-term prices. However, the Fed’s commitment to aggressive stimulus measures caused enough fear among investors to drive metals prices up nearly 5 percent during yesterday’s session.
Following a strong rally that drove the S&P 500 to record highs yesterday, stocks are down slightly during Thursday’s trading. “People know the Fed at some point has to start a tapering process,” Cameron Hinds, regional chief investment officer for Wells Fargo Private Bank, said. “Longer term, there’s also an indication of a little lack of confidence from the Fed in terms of the economic growth.” Though many analysts and investors are shocked that the Fed has failed to begin tapering, Bernanke has remained steadfast in his pledge to continue stimulus measure until U.S. unemployment reaches a level that we have still failed to attain.
At 1:41 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,370.00, Up $60.50.
- Silver, $23.29, Up $1.71.
- Platinum, $1,466.00, Up $39.80.
- Palladium, $726.40, Up $32.50.
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