Gold Spot Price Open: $1,354
Gold Spot Price Close: $1,354
Change in Gold Spot Price: No Change
Silver Spot Price Open: $22.68
Silver Spot Price Close: $22.57
Change in Silver Spot Price: -$0.11
Gold and silver did very little moving in the first day of what will be the last week of October. When markets closed, gold did not stray too far at all from its opening spot value while silver suffered a loss of just over a Dime.
A lack of any really compelling economic data made for a quiet trading day on Monday. As the few pieces of economic data made their way in from around the country and around the world, investors did not pay them much attention. Instead, all the focus is stuck on the swiftly approaching Federal Open Market Committee meeting, which is scheduled to take place this week. As you are probably well aware, the Federal Open Market Committee, or FOMC, is the Federal Reserve’s committee in charge of monetary policy for the United States.
The meeting will take place beginning early tomorrow and will last until the mid-afternoon on Wednesday. Due to the recent government shutdown, it is not anticipated that the FOMC will make any changes to monetary policy, though this will not stop people from doing their usual speculating. Instead of reacting to any alterations to current monetary policies, investors will likely be looking for early clues as to when a change to monetary policy might happen. However, if the past is any indication of the future, it is unlikely that the FOMC will come out and say when they think QE will be changed, tapered, abandoned, etc.
The fact that a change to QE does not seem a likely result of tomorrow and Wednesday’s meeting is bullish for precious metals, but indications that QE might be shifted before 2014’s second quarter might end up having a deeper underlying bearish effect on the precious metals market. In essence, the longer QE is retained the way it is currently, the more positively precious metals are expected to act.