Morning Gold & Silver Market Report – 12/13/2013
Ted Prince
12/16/2013 8:21:00 AM
INVESTORS AWAIT MARKET REACTION TO FOMC OUTCOME
Gold is trading flat to start the week as little change is expected from the Federal Reserve following their monthly policy meeting December 17-18. Though many analysts predict an initial taper announcement in early 2014, expectations that the Fed is ready to begin reducing the scale of its monthly asset purchase program have driven Precious Metals prices down this year. Investors continue to await the real impact an actual taper declaration will have on Gold and Silver as many experts believe a stimulus taper is already priced in to the market.
U.S. stock futures started the week higher today as all eyes remain focused on the outcome of this week’s Federal Open Market Committee (FOMC) meeting. Positive employment numbers, strong retail sales and a speedy resolution to U.S. budget negotiations are all factors that increase the likelihood that a Fed taper will come sooner than later. However, many do not believe the Fed is quite ready to begin reduction. Goldman Sachs stated that they believe changes to the current quantitative easing program will not commence until next year. "The case for tapering on the basis of the data since October is mixed at best. The strongest argument in favor is the improvement in the trend rate of payroll growth to the 200,000 level," Goldman Sachs economists wrote.
At 9:19 a.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,237.40, Up $0.30.
- Silver, $19.69, Up $0.04.
- Platinum, $1,359.30, Down $6.60.
- Palladium, $720.90, Up $4.70.
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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
