Gold Spot Price Open: $1,231
Gold Spot Price Close: $1,239
Change in Gold Spot Price: +$8
Silver Spot Price Open: $19.58
Silver Spot Price Close: $19.75
Change in Silver Spot Price: +$0.17
Gold and silver bounced back a little bit to close out what has been a fairly turbulent week for precious metals. When the day was finished, gold picked up roughly 8 dollars while silver gained closer to 20 cents.
Friday was a better day for precious metals as they were able to reclaim some of Thursday’s substantial losses. Though gains were made today, the FOMC policy meeting scheduled for next week may end up putting a bit more downward pressure on precious metals. As it stands, gold is on pace to post negative growth on an annual basis for the first time in over a decade. Gold’s lack of growth is largely being credited to the recovering global economy, seen here in the form of recently strong economic reports.
A resounding number of experts and investors are buying into the notion that the FOMC may actually end up making a tapering announcement at next week’s policy meeting. Thanks to the recent bipartisan budget agreement reached by US lawmakers, the geopolitical atmosphere in the United States is as calm as it has been in months. As investors become more willing to take risks with their investing funds in the US and around the globe, more and more money is being allocated to stock markets and away from safe-haven assets like precious metals.
Despite a large majority of the investing world being convinced that tapering will be announced next week, some market experts are convinced otherwise. Marketwatch.com is reporting that economists close to the Ben Bernanke camp are convinced that the Fed wants to reduce QE without raising long-term interest rates by a large margin, something that cannot be done at present. Mark Gertler, an NYU economist, is citing a weak labor market and low inflation as two reasons why next week is not the time to announce tapering. Though Gertler did not provide any real insight as to when he thinks QE will be reduced, he does not think it will be until sometime next year.
Regardless of whether investors think tapering will be announced next week or not, the eyes and ears of the investing world will be fixated on the FOMC policy meeting.
