Closing Gold & Silver Market Report – 12/16/2013

Brandi Brundidge

12/16/2013 4:46:00 PM

PRECIOUS METALS TREND UPWARD AHEAD OF FED MEETING

Gold gained during Monday trading as crude oil and the U.S. dollar both tumbled, making investors bullish on the yellow metal.  The market is anticipating the U.S. Federal Reserve’s decision on whether to taper monetary policy.  "Should tapering not be announced at the December meeting, given the elevated speculative positioning to the short side, there is scope for a short-covering rally," Barclays Capital Precious Metals analyst Suki Cooper said.  Gold has fallen 25 percent this year on the anticipation that the Fed will cut back fiscal policy. Investors think the drop was overdone and that number could retreat if tapering does not occur. 

Precious Metals prices have slowly been trending up ahead of this week’s Federal Reserve policy meeting.  The question at hand is whether or not the Fed will announce plans to taper its $85 billion monthly bond buying program.  The condition of the U.S. economy has been the main focus for continuing fiscal policy.  Federal Reserve chairmen declared their responsibility for determining when and if tapering is the right decision.  Fed Chairman Ben Bernanke said, "For this reason, we must continue to emphasize two other essential values — transparency and accountability. Ultimately, the legitimacy of our policies rests on the understanding and support of the broader American public, whose interests we are working to serve.''

At 5:15 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,242.60, Up $5.50.
• Silver, $20.01, Up $0.36.
• Platinum, $1,363.30, Down $2.60.
• Palladium, $717.80, Up $1.60.

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