Mid-Day Gold & Silver Market Report – 1/27/2014
GOLD EXPECTED TO TREAD WATER AHEAD OF FED ANNOUNCEMENT
The possibility of further tapering of quantitative easing continues to dominate the headlines today. The Gold price has erased earlier losses to trade flat. ‘Flat’ may well be the name of the game for Gold, according to Tyler Richey, an analyst for the 7:00’s report. Richey said, “Gold has seen a substantial rally in recent sessions, breaking through several technical resistance levels, but we expect that the precious metals market will largely tread water until the [Federal Open Market Committee] announcement Wednesday.”
Many economists, including Rockwell Global Capital’s chief market economist Peter Cardillo, believe that 1,775 is a key level to watch for the S&P 500. If the index falls below that level, equities could see a pullback. Corrections, like the one last week for equities, are hardly a rare occurrence. The most recent correction can be seen as a reminder that Gold is not the only investment heavily affected by quantitative easing.
At 1 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,267.00, Up $0.20.
- Silver, $19.89, Up $0.08.
- Platinum, $1,422.00, Down $8.60.
- Palladium, $723.40, Down $11.40.