Gold Spot Price Open: $1,232
Gold Spot Price Close: $1,188
Change in Gold Spot Price: -$44
Silver Spot Price Open: $20.08
Silver Spot Price Close: $19.31
Change in Silver Spot Price: -$0.77
Gold and silver suffered major losses a day after the Federal Reserve announced it will implement a $10 billion reduction to its bond-buying monetary policy, also known as Quantitative Easing, starting next month. On the day, gold lost 44 dollars while silver lost closer to 80 cents.
Gold fell to a new 6-month low today as a stronger US Dollar and stock markets ended up putting a hefty amount of downward pressure on gold and silver. Even though most people were under the impression that the marketplace had already factored in tapering before yesterday, those same people were surprised when stocks performed as well as they did today. Investors all over the world are perceiving the Fed’s decisions to taper as well as Beranke’s post-meeting statement as a bullish factor for stocks. The $10 billion per month reduction to QE tells people that the economy is performing well enough to allow tapering but is still insulated by the $75 billion in bond purchases that will proceed each and every month, making it a very safe investing climate.
The stronger USD index didn’t do gold any favors either as almost all factors were stacked against precious metals today.
Though many market experts think that the US Stock market’s bullish run over the past few weeks is coming to an end, others are convinced that it is just beginning. As we head into the final day of the week it will be interesting to see if gold and silver can make back any of the losses posted over the past few days or if things will continue to get worse for the commodities market.
With gold at its lowest point in a half year, bargain-hunters may be able to ease some of the heavy selling pressure being levied against gold and silver.
