Posted on September 24, 2013
Gold Spot Price Open: $1,328
Gold Spot Price Close: $1,323
Change in Gold Spot Price: -$5
Silver Spot Price Open: $21.92
Silver Spot Price Close: $21.76
Change in Silver Spot Price:-$0.16
Gold and silver both lost some value today in the midst of a very quiet world marketplace. At the end of the day, gold lost about 5 dollars while silver’s losses were in the neighborhood of fifteen cents.
Due to the fact that there is no major flurry of economic activity going on in the early parts of this week, investors and market watchers have chosen to fixate their attention on old news, last week’s FOMC meeting. As everyone is aware at this point, the Federal Reserve shocked the investing world by announcing their plans to retain their QE monetary policy. Quantitative Easing was believed to be dead in the water only a week or so ago, but the Fed shocked everyone by announcing that they would retain this policy due to the fact that the US economy is not believed to be strong enough to survive without QE’s assistance.
This week, investors are now wondering what QE’s fate will be come next month’s FOMC meeting. With that being said, investors speculation in regards to QE is the same now as it was a few weeks ago. There are still sides facing off, some believing QE will done away with by the end of the year while others have seen the Fed’s decision last week and are now under the belief that the current monetary policy will be kept in operation well into next year.
Playing off the fact that the Fed announced their retaining of QE last week, the European Central Bank recently announced that they too are planning on implementing easy monetary policies if their overall economy does not see any substantial growth in the near future. While this news garnered limited reactions from the precious metals sector, it is anticipated that, if the ECB follows through with easy money measures, the long-term implications of these policies will likely be positive for the spot values of both gold and silver.
The US government also has to deal with some budget and debt issues in the imminent future otherwise the US government could be put to a halt.