Closing Gold & Silver Market Report – 12/18/2013

Brandi Brundidge

12/18/2013 4:20:43 PM

FED DECIDES TO TAPER FISCAL POLICY; METALS REACT

The Federal Reserve finally announced they would trim their bond buying program by $10 billion a month beginning January 2014. Nuveen Asset Management chief equity strategist Bob Doll called it “good news for equities.”  He added, “The Fed is finally signifying to us the economy is doing better. [In] 2014, the economy will be a bit stronger, a bit broader and this is just confirmation of it.” Previously, the Fed made it apparent that tapering would not occur until the unemployment rate fell below 6.5 percent. The rate is currently hovering around 7 percent after November’s jobs report reflected an astonishing 203,000 jobs created. 

Gold held steady ahead of the Fed announcement, but once news broke that tapering would begin shortly, the yellow metal slightly dropped. Libertas Wealth Management Group President Adam Koos commented on the Fed’s decision, saying, “more growth in the monetary base just means more inflation later, which should mean more appreciation in metals and other hard assets,” adding that Gold would be an “appetizer — the beginning of the commodity meal on the menu.”

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

• Gold, $1,220.50, Down $12.10.
• Silver, $19.77, Down $0.13.
• Platinum, $1,336.10, Down $11.50.
• Palladium, $697.40, Down $3.60.

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