Morning Gold & Silver Market Report – 6/18/2014

Ryan Schwimmer

6/18/2014 8:15:42 AM

GOLD FLAT AHEAD OF FED STATEMENT

A number of moving pieces will affect Precious Metals prices today, but none are expected to have an effect as large as the Federal Reserve’s statement and press conference this afternoon. Stock futures are pointing toward a lower open for Wall Street as investors prepare for a potential rate hike from the Fed. Tony Crescenzi, market strategist at Pimco, said, “With both unemployment and inflation continuing to move closer to the Fed’s target, investors are braced for the possibility that the Fed revises upward its projection for its policy rate in 2015 and 2016.”

Precious Metals prices are flat at the moment, as “investors are waiting on the sidelines until the [Fed] meeting concludes,” according to Commerzbank analyst Daniel Briesemann. UBS analysts said in a note, “Tensions in Iraq have been the sole reason for Gold's recovery in June, enabled by lofty short positioning.” Gold’s somewhat-positive correlation to oil could come into play today, as Iraq’s top oil refinery is on fire and is the location of a battle between government forces and militants.

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

• Gold, $1,273.30, Down $0.70.
• Silver, $19.78, Down $0.01.
• Platinum, $1,455.20, Up $10.10.
• Palladium, $826.30, Up $9.60.

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