Closing Gold & Silver Market Report, 9/13/2012
Brandi Brundidge
9/13/2012 3:55:00 PM
PRECIOUS METALS MARKETS REACT TO QE3 CONFIRMATION
Further stimulus measures were announced today as the Federal Reserve announced the American economy would receive the third round of quantitative easing, also known as QE3, beginning tomorrow. The program consists of purchasing $40 billion in mortgage-backed securities each month in addition to an existing policy known as Operation Twist, which the Fed introduced earlier this year. The two plans combined will provide an additional $85 billion in long-term bonds to the Fed’s balance sheet per month. The focus is concentrated on maintaining extremely low interest rates and mortgage rates in order to increase consumer spending and to create new jobs. The Fed had previously stated that interest rates would remain extremely low until late 2014, but have now changed that timeframe to mid 2015.
Gold rose 2 percent today after the Fed announced QE3. Jeffery Sherman, at DoubleLine Capital said, "The Fed's inflationary behavior should be bearish for the dollar in the long run and drive investors to seek protection via the Gold market.” Gold's safe-haven appeal is returning, and investors are turning to the yellow metal as a safe store of value due to the concern of devaluing currency when liquidity is added to markets.
At 5:05 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,768.80, Up $36.10.
- Silver, $34.74, Up $1.44.
- Platinum, $1,685.10, Up $34.50.
- Palladium, $688.90, Up $9.60.
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
