Closing Gold & Silver Market Report – 9/16/2014
Ted Prince
9/16/2014 4:35:00 PM
INTEREST RATE SPECULATION REMAINS FOCUS OF BULLION INVESTORS
Gold received a mild bump in price today as the monthly Federal Open Market Committee (FOMC) meeting got underway. Many experts have speculated that the Federal Reserve is ready to begin raising interest rates, which is the reason for the yellow metal’s recent decline. “The wording of the FOMC statement this week could still play down future rate hikes and the need for a tighter policy stance into 2015," Andrey Kryuchenkov, an analyst at VTB Capital, said. At the conclusion of tomorrow’s session, investors will be intently focused on the comments of Fed chair Janet Yellen. Past meetings have historically yielded comments from the chairwoman that indicates future strategy regarding U.S. monetary policy. Indications of a hike in lending rates could put further pressure on Gold while a continued commitment to current near-zero rates could give metals a boost from current lows.
U.S. stocks are trading higher today as China plans to increase its monetary stimulus program. “The market sees the letters ’Q’ and ’E’ combined with China and it’s Happy New Year to the money printers and that’s what the jump is,” Joe Saluzzi, co-head of equity trading at Themis Trading LLC, said. “They want the game to continue. They may not know how or why it’s happening but get some new QE money in there and that’s how the market reacts.” Both equities investors and Gold bugs will be focused on Yellen’s comments following the conclusion of tomorrow’s FOMC session.
At 5:00 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,236.60 Up $0.50
- Silver, $18.76 Up $0.08
- Platinum, $1,366.80 Up $2.30
- Palladium, $843.50 Up $6.60
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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
