Closing Gold & Silver Market Report – 10/30/2013
Brandi Brundidge
10/30/2013 4:19:24 PM
FED STATEMENT SUPPORTS U.S. DOLLAR, PRESSURES GOLD
Today, the U.S. Federal Reserve met market expectations by not tapering its $85 billion monthly bond-buying program. Recent economic data reflecting weaker than expected numbers for both unemployment and consumer confidence put a halt to the cutback in fiscal policy. “There is no explicit mention of the government shutdown or what impact it might have on the economy or the Fed's monetary policy,” Capital Economics chief U.S. economist Paul Ashworth said in a note. “It is possible that Fed officials want to downplay the recent two-week closure and the potential for another shutdown early next year because they still intend to begin tapering the asset purchases at the FOMC meeting in December.” The Fed statement failed to acknowledge last month’s government shutdown, which could push investors to be more concerned with the stability of the U.S. economy.
Gold dropped slightly during the Federal Reserve meeting when it was announced that economic activity is showing improvement. “The dollar strength is keeping Gold under pressure,” Pension Partners LLC chief investment strategist Michael Gayed said in a telephone interview. “The safe-haven premium is diminishing as the Fed sees signs of economic improvement.” However, the Fed made the decision to not taper today for a specific reason, as Fed chairman Ben Bernanke has said in the past that quantitative easing will not be cut back until economic conditions progress.
At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,344.60, Down $2.90.
- Silver, $22.78, Up $0.24.
- Platinum, $1,474.00, Up $11.10.
- Palladium, $748.00, Down $0.10.
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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
