Gold Spot Price Open: $1,265
Gold Spot Price Close: $1,255
Change in Gold Spot Price: -$10
Silver Spot Price Open: $19.89
Silver Spot Price Close: $19.63
Change in Silver Spot Price: -$0.26
Gold and silver are posting losses thanks to a technical correction after last week and Monday’s gains. When all was said and done today, gold lost about ten dollars while silver’s losses were closer to 30 cents.
All eyes were on the FOMC today and will continue to be until their policy meeting concludes sometime tomorrow afternoon. As of now, a large majority of investors and market analysts are convinced that the Fed will further reduce its Quantitative Easing monetary policy. In fact, those that are expecting to see a reduction as a result of this week’s meeting are anticipating that the Fed will reduce its monthly bond buying by another $10 billion. A reduction in line with expectations will see the QE policy reduced to $65 billion in bond purchases per month.
Compared to yesterday, today saw a world marketplace that was much calmer and much more stable than it was a day ago. Many of the ailing currencies we saw yesterday regained some of their losses, at least for the time being. Should the Fed actually follow through with another tapering move tomorrow those same periphery currencies may be feeling the selling pressure yet again.
The Chinese Lunar New Year holiday is only about two days away and will cause the world’s second largest economy to shut down for nearly a week.
If tomorrow goes the way most people are expecting we may finally see gold and silver be given the room to make extended bullish runs. The thought of all this easy money fleeing the marketplace is only making investors want to find assets that are inherently less risky, like precious metals investments. On top of it all, equities are retreating across the board, yet another reason gold and silver may have room to make gains in the near future.
