Daily Gold & Silver Market Report – 10/21/2015

Brandi Brundidge

10/21/2015 9:52:00 AM

MARKET FOCUSES ON FEDERAL RESERVE, ECB POLICY MEETINGS

Investors hope the Federal Reserve’s last two policy meetings of the year provide hints for their next plan to stimulate the U.S. economy. The Fed meets on October 27-28, with their last 2015 meeting set for December 15-16. The futures market has set pricing with expectations the Fed will not increase interest rates until March 2016.  Former Clinton Treasury Secretary Larry Summers suggests the Fed should wait to raise rates when an inflation issue is present. "Even looking out 10 years, markets are expecting little more than 1 percent inflation on the index the Fed uses for inflation," he said in a CNBC "Squawk Box" interview. "You should kick up interest rates, as has been true forever, when you have an inflation problem."

Gold eased Wednesday ahead of Thursday’s European Central Bank (ECB) policy meeting, which has pressured the euro and supported the U.S. dollar. Investors are watching tomorrow’s meeting for clues as to additional stimulus to its 60-billion-euros per month asset purchase program. "Gold is just following U.S. (monetary policy)," Natixis analyst Bernard Dahdah said. "Gold has risen $75 since early September, based on expectations that a rate hike will happen in 2016, not the end of this year."

At 10:55 A.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,168.50 Down $11.50
• Silver, $15.74 Down $0.26
• Platinum, $1,008.30 Down $11.80
• Palladium, $681.10 Down $14.70

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