Closing Gold & Silver Market Report – 11/20/2013
METALS, STOCKS FALL AFTER FED MINUTES
Precious Metals prices fell after the afternoon release of the minutes from the Federal Reserve’s October meeting. Stock futures also plummeted after the release, as the S&P 500’s loss streak extended to the longest in eight weeks. The minutes showed that Fed officials expect economic data to improve to the point where they could begin to taper the quantitative easing (QE) program, possibly by next month. “The battle lines are clearly drawn, with some at the Fed now itching to scale back QE unless the incoming data are awful; the cumulative rise in payrolls since QE3 started is enough for these members. We think [Janet] Yellen is not persuaded of this view but it will be hard for the doves if November payrolls are strong,” Pantheon Macroeconomics chief economist Ian Shepherdson said.
However, some disagree with that assessment. “The market is still expecting a taper next year, not in December of this year,” Wells Fargo Private Bank chief investment officer Dean Junkans said. Peter Boockvar, chief market analyst at the Lindsay Group, added, “Unless we see big upside in the November payroll report, Yellen will take the reins in January with current policy on track and she'll decide where to go from there.”
At 5 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,244.90, Down $31.10.
- Silver, $19.91, Down $0.49.
- Platinum, $1,393.50, Down $27.40.
- Palladium, $712.80, Down $10.60.
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