Gold Spot Price Open: $1,346
Gold Spot Price Close: $1,343
Change in Gold Spot Price: -$3
Silver Spot Price Open: $22.57
Silver Spot Price Close: $22.81
Change in Silver Spot Price: +$0.24
Gold and silver both did some moving on Wednesday and by the time the day ended, gains made early on were counteracted by a seemingly bearish Fed statement. When markets closed, gold lost about 3 dollars while silver made gains closes to a quarter.
As many expected, the FOMC’s meeting yielded the conclusion that monetary policy would remain unchanged. The $85 billion monthly bond-buying program, also known as Quantitative Easing, was not expected to be changed because the US economy is simply not strong enough yet. With that being said however, the Fed’s statement suggested that while the US economy may not be strong enough to do away with QE, it is not as weak as many people think. This does not mean the Fed is gearing up to alter QE anytime soon, but having the Fed express some sort of confidence in the economy was taken as a bearish factor for precious metals.
October’s employment report was another important piece of information for investors as it was intriguing to see if October’s report could yield results superior to that of the recently released September employment report. The market expectation was that non-farm payrolls would have risen by about 150,000, though in reality the report expressed a rise in non-farm jobs to the tune of about 130,000. This prompted precious metals to make their biggest gains of the day; gains that were reverted for the most part by the day’s end.
In other news, economic news out of Europe has been positive for the most part this week, but because of the FOMC the marketplace has more or less ignored these pieces of data. China’s short-term interest rates continuing to increase is still a talking point for investors, though the situation will only begin to really matter if monetary policy in China is tightened.
