Posted on September 13, 2013
Gold Spot Price Open: $1,331
Gold Spot Price Close: $1,324
Change in Gold Spot Price: -$7
Silver Spot Price Open: $22.23
Silver Spot Price Close: $22.24
Change in Silver Spot Price:+$0.01
Gold and silver both finished the week having made minimal movements on Friday. When all was said and done, gold lost about 7 dollars while silver did not do much moving at all, picking up only about a penny. As we end this week and look forward to next week, the main thing on every investor’s mind will be the looming FOMC meeting.
Safe-haven demand for precious metals has fallen significantly during the latter parts of this week due to the decreasing likelihood that the US will commit to military intervention in Syria. Even though President Obama announced, on Wednesday, that he plans on following through with an attack on Assad’s regime, Russian talks of peace have quelled the overall tension significantly. Russian president Vladimir Putin was the biggest advocate for a peaceful resolution to this most recent situation, urging his Syrian allies to give control of their chemical weapons to the international community.
As of now it looks like Syria will cooperate with Russia’s suggestions, and in turn it is thought that the chances of a new military altercation in the Middle East will drop by a large margin.
Next week’s Federal Reserve policy meeting is expected to emit some major news in regards to US monetary policy going forward. It is a widely held belief that the Fed will announce an imminent winding down of their monthly bond-buying program (also known as Quantitative Easing). Though the exact changes being made to QE are up for debate as of now, most experts agree that the Fed will reduce their $80+ billion per month bond-buying initiative by roughly $20 billion, or about 25%.
Keep in mind that even though markets are acting as though QE will be wound down or done away with, the only time we will know whether this is the case or not is when the FOMC meeting’s notes are released.