Posted on June 19, 2013
Gold Spot Price Open: $1,367
Gold Spot Price Close: $1,351
Change in Gold Spot Price:-$16
Silver Spot Price Open: $21.72
Silver Spot Price Close: $21.40
Change in Silver Spot Price:-$0.32
Gold and silver started the day posting small gains, but by the end of the day losses ended up being fairly substantial. At the end of the day gold lost about 16 dollars while silver dropped a little over 30 cents.
The Federal Open Market Committee, at the end of their meeting, announced that no immediate changes will be made to monetary policy in the US, though they did admit that the US economy has expanded by a decent amount. Nowhere in the post-meeting statement was there any mention of the winding down of the currently employed bond-buying program, though Ben Bernanke’s press conference yielded a different conclusion. Bernanke actually alluded to the fact that the Fed’s bond-buying may not be as fervent in a few months as it is currently.
Thanks to these statements and the Bernanke press conference, the US Dollar surged towards the end of the day which effectively put a decent amount of downward pressure on gold and silver.
The civil unrest that is growing in both Brazil and Turkey is going to be gaining a lot of attention as we move forward. What first started out as protests by the youth of the two respective countries has quickly turned into a series of riots, confrontations between protesters and police, and an overall feeling of dissatisfaction from the citizens of both nations with how their countries are being run.
As these situations escalate and gain more attention, they could act as life-preservers for gold and silver as they stand the chance to lose more value in the coming days. Anytime large-scale unrest becomes a problem in developed, high-profile nations, gold and silver move into their not so uncommon role as safe-haven assets.
Asian and European stock indexes posted mixed results on Wednesday as most of those markets were awaiting the outcome of the FOMC meeting.