Posted on August 22, 2013
Gold Spot Price Open: $1,375
Gold Spot Price Close: $1,367
Change in Gold Spot Price: -$8
Silver Spot Price Open: $23.20
Silver Spot Price Close: $22.93
Change in Silver Spot Price:-$0.27
Gold and silver bounced around a bit during the day Wednesday in anticipation of the release of the FOMC’s minutes for their upcoming meeting. At the end of the day, gold lost about 8 dollars while silver dropped 3 cents shy of 30.
When US markets opened, most investors were looking forward to one thing and one thing only, and that was the release of the FOMC’s minutes. Though there is an ongoing, large-scale currency depreciation hitting a few Asian currencies, the world marketplace was much more concerned with what the Federal Reserve had to say.
While a large quantity of investors were hoping that they would hear some further clarification about the future of Quantitative Easing in the United States, that hope was not fulfilled. Instead, the minutes expressed a Fed that cannot agree on what they should do with monetary policy in the United States as this year comes to a close. Because the Fed’s minutes did not explicitly state anything about when or if QE would be done away with, precious metals investors took this news as a positive. In the immediate aftermath of the minutes being released the spot prices of gold and silver rose a bit, but by the day’s end both metals ended up recording losses.
The decline of the Indonesian Rupiah and the Indian Rupee has been put to a temporary halt, though it is unclear how long this will last. Both Indonesian and Indian government officials are attempting to alleviate the pending currency crisis, though their attempts have been futile thus far. So long as interest rates in more developed countries continues to rise, selling pressure will mount on mid-level currencies, the likes of which abound throughout Asia.
We will be keeping a close eye on this situation and monitor it for any further developments.