Mid-Day Gold & Silver Market Report – 10/30/2013

Ted Prince

10/30/2013 12:44:00 PM

GOLD, STOCKS MOVE SLIGHTLY AHEAD OF FOMC ANNOUNCEMENT

Gold is realizing modest gains on Wednesday as investors cling to expectations that the Federal Reserve will continue its liberal monetary program following poor jobs data.  The Fed’s two-day Federal Open Market Committee (FOMC) meeting is set to conclude today and most analysts are forecasting that policy officials will announce that quantitative easing measures will continue into the foreseeable future.  "Gold has always been right up there as the commodity that is most exposed to any Fed decision to cut back on bond purchases," economist at CIMB Song Seng Wun said.  "The (Fed) meeting will decide whether more money will be taken off the table or whether there will be a rebound."

U.S. stocks fell slightly ahead of today’s post-Fed meeting press conference.  “We had our gains yesterday, today you’re seeing some caution ahead of the Fed statement,” market strategist for Prudential Financial Inc., Quincy Krosby said.  “With the market at record levels, investors want to lock in gains on the off chance that the Fed statement isn’t as thoroughly and purely accommodative as expectations suggest.”  For now, the Fed-centric focus of the equity and Precious Metal investors continues while many wait for the time when markets can function based on traditional fundamentals and not rely so heavily on the governments monetary injections. 

At 1:43 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,351.90, Up $4.40.
• Silver, $22.99, Up $0.45.
• Platinum, $1,478.20, Up $15.30.
• Palladium, $748.10, Up $0.10.

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