Mid-Day Gold & Silver Market Report – 1/22/2014
GOLD, STOCKS STEADY AHEAD OF FED MEETING
The Gold price continues to be resilient as speculation that the Federal Reserve will make another cut to monetary stimulus looms ahead of next week’s Fed policy meeting. “The market will trade sideways to lower ahead of the Fed meeting,” Frank Lesh, a trader at FuturePath Trading, said. Analysts at Bloomberg expect the Fed to continue reducing quantitative easing (QE) measures by $10 billion per month throughout the rest of the year, wrapping up the program by the end of 2014. However, as Gold appears to be resistant to further downward pressure, many experts believe the stimulus taper is already priced in to metals markets.
As corporate earnings data continues to trickle in, U.S. equities are trading even today as reports fail to inspire any momentum in either direction. “Earnings are all that matters,” TIAA-CREF Asset Management global investment strategist Dan Morris said. “To see the justification for meaningful higher prices, we just need to wait for earnings to catch up and accelerate a bit and that may take a quarter or two.” As QE appears to be near an end, traditional fundamentals will be the backbone of future market movement.
At 1:04 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,241.70, Down $2.60.
- Silver, $19.91, Down $0.02.
- Platinum, $1,464.10, Up $8.60.
- Palladium, $749.50, Up $1.40.
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