Morning Gold & Silver Market Report – 12/17/2013

Ryan Schwimmer

12/17/2013 8:01:03 AM

REDUCTION IN QE WOULD BE BEARISH FOR GOLD, STOCKS

Gold and Silver have given up most of Monday’s gains in early morning trading. VTB Capital analyst Andrey Kryuchenkov said, “For Gold, any hint of a reduction in (quantitative easing) would probably be bearish, (pushing Gold back) to potentially $1,220 - $1,200 [per ounce]. As soon as (the price) comes back towards $1,220, there are some opportunities for physical buying and investor buying.” HSBC analysts added, “Post the (Federal Open Market Committee) meeting, we are more favorable towards Gold given recent COMEX data, which show that speculators still hold significant short positions on Gold. The approaching year-end may lead to a covering of spec shorts, which is price supportive.”

U.S. stock futures are pointing toward a higher opening for Wall Street. Many economists expect that a tapering announcement would be bearish for stocks as well. Polls from Wall Street Journal and Bloomberg show that approximately one-quarter to one-third of economists expect that tapering will begin at the conclusion of the meeting Wednesday.

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

• Gold, $1,236.60, Down $10.30.
• Silver, $19.87, Down $0.29.
• Platinum, $1,357.00, Down $6.10.
• Palladium, $714.90, Down $1.50.

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