Closing Gold & Silver Market Report – 10/9/2013
METALS PRESSURED BY DOLLAR; FED MINUTES CONFIRM TAPERING CONFLICT
Precious Metals were affected throughout the day as the U.S. dollar rose to a one week high. Today, President Barack Obama introduced Janet Yellen as a Federal Reserve Chairman nominee, which was a highly anticipated move that supported the U.S. dollar. The market is certain Yellen will follow in Ben Bernanke’s footsteps with a loose monetary policy by not tapering current monthly asset purchases too quickly. Investors assess this as a positive for Precious Metals as fiscal policy is looked upon as inflationary and Gold is seen as a hedge against inflation.
The minutes from September’s Federal Reserve meeting were released today and it appears that the decision to not taper the monthly bond-buying program was a difficult one. "All members but one judged that it would be appropriate for the Committee to await more evidence that progress would be sustained before adjusting the pace of asset purchases," the minutes said. Apparently U.S. economic data is not indicating that the job and housing markets are moving toward a recovery. If the U.S. economy showed improvement, the Federal Reserve would have chosen to cut back monetary policy as they previously announced.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,309.00, Down $17.60.
- Silver, $21.92, Down $0.55.
- Platinum, $1,381.30, Down $21.40.
- Palladium, $703.00, Down $12.90.
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