Morning Gold & Silver Market Report – 5/1/2013

Ryan Schwimmer

5/1/2013 8:01:00 AM

FOMC EXPECTED TO STAY THE COURSE

Precious Metals prices have dipped this morning as investors await a policy decision from the Federal Open Market Committee (FOMC) meeting, which will conclude today. After a string of mostly positive economic reports over the fall and winter, recent signs have suggested that the same dip experienced last spring and summer could be repeated this year. Most economists believe that quantitative easing will continue for the foreseeable future. “It seems an easy decision to push the discussion down the road and issue a steady-as-she-goes statement,” Julia Coronado of BNP Paribas said.

Holidays in China and Europe could be to blame for the Gold price’s dip today. China, specifically, has a huge impact on the physical metals market as the second-largest consumer of Gold in the world. Because of this, economic data and the FOMC decision could have an enhanced effect on prices today. UBS analyst Joni Teves said, “A slight dovish tilt in the FOMC's tone would be good for Gold, as would a disappointing employment number. But on the employment front, the risk is that non-farm payrolls are expected to have recovered in April (which) would potentially offset the positive impact of a more cautious FOMC (decision).”

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

• Gold, $1,461.80, Down $12.80.
• Silver, $23.70, Down $0.58.
• Platinum, $1,481.30, Down $27.40.
• Palladium, $688.80, Down $11.10.

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