Morning Gold & Silver Market Report – 12/12/2012

Geoffrey Varner

12/12/2012 7:48:00 AM

MARKET MOVES UP; ANTICIPATION GROWS FOR FED ANNOUNCEMENT

Anticipation for continued stimulus from the Federal Reserve has encouraged investors to push U.S. stock futures into positive territory again this morning.  Today the Fed will announce its latest monetary policy decision followed by Ben Bernanke’s news conference at 2:15 p.m. Mike McCudden, head of derivatives at Interactive Investor in London, said, “With the devil being in the detail, investors are cautious this morning as they wait to pick through Bernanke’s statement on [quantitative easing] later today. As the Fed are widely expected to announce a straightforward rebrand of Operation Twist, investors are waiting to see if there is any change to their steadfast position over the longer term.”

The Gold price is likewise rising on the expected announcement of more stimulus from the Fed. Additional easing means support for Gold by adding to inflationary fears and maintaining pressure on long-term interest rates. David Govett, head of Precious Metals at Marex Spectron, said “If the Fed comes out and says it is going to put $45 billion into long term Treasuries, on the face of it that is good for Gold.” He goes on to say some of that is already priced in, but additional investment on the Fed’s part could spur a higher Gold rally.

At 9 a.m. (EST), the APMEX Precious Metals spot prices were:

• Gold, $1,717.40, Up $7.80.
• Silver, $33.26, Up $0.27.
• Platinum, $1,641.42, Up $0.20.
• Palladium, $697.50, Up $0.70.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EST)! Or call us Fridays until 6 p.m. (EST)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.