Gold Spot Price Open: $1,390
Gold Spot Price Close: $1,385
Change in Gold Spot Price:-$5
Silver Spot Price Open: $22.09
Silver Spot Price Close: $21.92
Change in Silver Spot Price:-$0.17
Gold and silver both lost a little bit of value on Monday as the marketplace was mostly subdued for the day in the lead-up to the FOMC meeting which starts tomorrow. When all was said and done gold lost about 5 dollars while silver’s losses on the day ended up being about 17 cents.
Like previously mentioned, the US Federal Reserve’s Federal Open Market Committee is set to begin a meeting tomorrow morning. This latest meeting will center around monetary policy in the US and whether to continue with Quantitative Easing or to wind it down. Quantitative Easing, for those who do not know, is a policy where the Federal Reserve pumps millions of dollars into the US economy every single month. This widespread pumping of cash does a good job of reducing the value of the US Dollar, thus improving our exports. Up to this point QE has served the US well, and many attribute it for helping us find our way out of the recession that hit back in 2008. Now, many people feel that QE is no longer necessary and that our economy has improved by a lot since 2008.
The Wall Street Journal weighed in on this meeting saying that they think the FOMC will decide to taper off QE. Their solution proposes that Quantitative Easing will be reduced at a rate that will still keep interest rates in the US low. This seems like a viable solution, but there are others that think QE should remain unchanged, while others still think that the monetary policy should be immediately done away with completely.
Tomorrow will likely play host to another day of subdued trading and precious metals movement, but once the FOMC meeting concludes on Wednesday afternoon we stand the chance to see a flurry of activity. At the end of the meeting, Ben Bernanke is set to address the public with the conclusion of the meeting, at which point we could be in for some big news.
