U.S. stocks dropped to a seven-week low  following the end of a two-day Federal Reserve meeting to discuss economic strategy going forward. Few are surprised to learn that plans for indefinite monetary easing and near-zero interest rates until 2015 remain unchanged. " At first glance I don't see any surprises at all," said David Sloan, an economist at 4CAST in New York. " It seems like we had a big meeting last time and this time they have maintained their tone." The Fed remains concerned that theirpolicies are necessary to help boost a job market  that would not be strong enough without it. " They made the strategic decisions back in September and now they are fully in," said Adolfo Laurenti, an economist from Mesirow Financial. " There is really no easy way out, for quite some time."

Gold pulled back once again as the news of further stimulus boosted the dollar. The metal remains slightly above $1,700 today as many investors await the upcoming presidential election to decide what strategic moves they need to make in allocating their personal portfolios. Though the market has slipped downward following highs of near $1,800 last month,  Federal Reserve policy continues to cast a positive outlook on Gold in the long-term. " The U.S. Federal Reserve, through multiple initiatives and actions, consequently has become Gold’s best friend," Jeffrey Wright and Richard Hastings, strategists at GHS, wrote in a report Wednesday. Wright and Hastings added that " the commitment from the Federal Reserve to maintain an accommodative policy until 2015 [...] provides a strong foundation for what we expect will be continued gains in Gold prices into 2014."

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1702.60, Down $6.80.
• Silver, $31.79, Down $0.03.

The price of Gold has seemed to lose its momentum after the credit ratings of five Spanish regions were downgraded yesterday, which pushed the euro and Gold down.  The U.S. dollar is stronger today after Germany's business sentiment dropped for the sixth consecutive month, reflecting a weaker economy. Jeremy East at Standard Chartered believes the yellow metal is being tested at this time, but the expectation for future higher prices remains the same. East said, “I think we're going to have another test on the downside. The market is still quite heavily long, especially on the Commitment of Traders."

The European debt crisis has unfortunately worsened over the past three years, which has led to it spreading like a wildfire throughout the eurozone. The Purchasing Managers’ Index (PMI) for the eurozone was released today. The report is viewed as a reliable indicator of how about 5,000 businesses polled in the eurozone have grown. The PMI for October has dropped to 45.8 from September’s reported 46.1. This is the lowest reading since June 2009.  The reading shows how eurozone businesses have been forced to cut jobs to reduce costs with the unforeseen future approaching. " It's very disappointing, it's a depressing scenario as things are getting worse," said Chris Williamson, chief economist at data collator Markit.

At 9:16 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,711.70, Up $2.30.
• Silver, $31.92, Up $0.11.

Gold has seen a significant dip in price today. With any strong movement in prices there is usually an underlying cause, and today that has been the struggles of the European economy. Spain has had their credit rating downgraded and has fallen behind in their debt reduction plans. The news has caused the euro to lose value and in turn has added value to the U.S. dollar.  However, there are indications this maybe a temporary dip in Gold’s market value. " It's a confluence of markets. With equities off so much, typically when we see a big drop in equities there's sort of a knee-jerk reaction that brings Gold down for a while before Gold picks up in response to the weaker equities," said Jeffrey Nichols, senior economic adviser at Rosland Capital. " So it may be playing through that game once again."

Last month all the talk was surrounding economic stimulus deals being set in motion by the world’s leading central banks. This month the issue has become whether the banks have done enough to stimulate growth.  This week U.S. Federal Reserve members are discussing plans that could add more stimuli to the national economy. While there may be talk, most economists believe it will not go into action right away. " The Fed has entered a holding pattern while watching for signs of a substantial improvement in the labor market," said Ellen Zentner, senior U.S. economist for Nomura Securities.

At 5 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,708.40, Down $17.90.
• Silver, $31.70, Down $0.57.

Precious Metals prices are being dragged down by the euro,  even as U.S. stock market indexes are falling. The credit ratings of five Spanish regions were downgraded, hurting the euro’s price. Deutsche Bank analyst Daniel Brebner said, “You’ve had QE priced in and what we’re seeing now is a bit of at retracement following that. We have a pause in monetary policy action … Conditions economically remain tenuous … there are concerns with respect to growth, and therefore the potential for deflation is starting to pick up a little bit.”

Stanley Fischer, the head of the Bank of Israel,  believes that the global economy is worsening  to a point of recession. “The empirical evidence is that [QE3] is actually quite effective, and we’ll see. This one is aimed very much at the mortgage markets, and housing had already been making a comeback in the United States so this might give it a push,” he said. Regarding the U.S., he added, “They have to deal with the fact that they have an unsustainable deficit and it’s clear from the polls that the uncertainties about fiscal policy are having a major impact on how people think about the future of the economy.”

24/7 Wall St. recently listed the  10 nations that control the world’s Gold. The list took into account each nation’s Gold-to-GDP ratio, and some of the rankings were surprising. The resarchers wrote, “Gold is no longer just an inflation hedge it is the key protection against a global race to devalue currencies, even if consumer prices are somewhat stable. Bonds pay historically low rates and stock market volatility has spooked many investors, so gold is becoming the true safe haven.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,710.90, Down $15.30.
• Silver, $31.91, Down $0.36.

Friday’s disappointing corporate earnings drove stock prices down more than 200 points and took Gold prices down 1.8 percent as investors sought the safety of the U.S. dollar. This morning, the U.S. dollar is down allowing  Gold prices to move up  off morning lows. Gold may also be getting support out Europe, as Spain’s Prime Minister appears to be getting support for proposed austerity measures. This has bolstered the euro, thus putting more downward pressure on the U.S. dollar.

The  euro did edge up higher  after the results of Spain’s regional elections came in. The party of Spanish Prime Minister Mariano Rajoy managed to hang on to power in his home region. This is seen as an important victory as it would indicate support for the wide spread austerity measures proposed by Prime Minister Rajoy. There is still a great deal of investor frustration that Spain has not requested a bailout from the European Central Bank. This win will stabilize the euro for the meantime, but the question is for how long?

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,726.00, Up $1.90.
• Silver, $32.26, Up $0.15.

Spain unsuccessfully requested a bailout today from the eurozone  to rescue itself from a financial collapse, which directly affected the euro and gold negatively by pushing both down. " We're hearing Europe, the financial crisis you're starting to hear that again, so the dollar strengthened a little bit. And then you're hearing OK news out of China, so that means the Chinese central bank may be delaying their new stimulus measures," said Yu-Dee Chang, chief trader at Ace Investment Strategists.

The fiscal cliff is approaching quickly as the market watches from afar to see how our government decides to handle the tax and spending cuts for the American people. The choices will not only affect all U.S. citizens, along with the economy. " The fiscal cliff impacts the economy both by creating uncertainty and by imposing austerity," Ethan Harris, Bank of America's North American economist, said in a report. " If we go over the cliff for an extended period of time, a recession is likely."

At 4 p.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,722.50, Down $22.20.
• Silver, $32.11, Down $0.78.

Gold closed down today as continued euro uncertainty and a weak U.S. equities market had many investors looking to consolidate gains. A battle of wills between Berlin and Paris over greater European Union control of national budgets weakened the euro, and Gold, relative to the dollar. Adding to the pressure was new data showing China’s economy slowed for yet another quarter. “Without any other major drivers, the Precious Metals will continue to show weakness and test the downside” because the latest buyers might lack patience to wait for another bull run, said Carlos Perez-Santalla, a broker at PVM Futures. Despite its recent pull back,  Gold is still up $150 per ounce from mid-August.

A jump in home construction permits has underpinned the  largest increase in the index of U.S. leading economic indicators in seven months. While projected to climb only 0.2 percent, the Conference Board’s gauge of the economic outlook for the next three to six months increased 0.6 percent. “The residential housing market is in the very early stages of a durable recovery,” Joe Lavorgna, at Deutsche Bank Securities Inc. in New York, said. “Housing is a leading indicator of underlying domestic demand thus, continued improvement in the former bodes well for some acceleration over time in the latter.”

At 5 p.m. (EDT) – the APMEX Precious Metals spot prices were:

• Gold, $1742.10, Down $10.40.
• Silver, $32.84, Down $0.42.

Precious Metals are trading lower in early morning trading, in line with a softer euro.  Though the euro is down today, for the week it is up approximately 1%, and some analysts are speculating that  the reason is all in the minds of investors.  Instead of expecting this week’s EU summit to produce results, “the market is well prepared for a meeting with no new measures,” according to Anders Moller Lumholtz of Danske Bank.

The weekly jobless claims report showed an unexpected rise in new claims this week, though it has had little effect on the markets.  A jump of 46,000 claims put the level at its  highest in four months.  The Labor Department says that low levels seen in the past week were actually an error in reporting on the part of California.  A spokesman for the department said that the report’s numbers “are being distorted … by an issue of timing.”

The Gold price remains in a narrow range,  despite losses this morning.  Uncertainty in the eurozone is pressuring the Gold price as the euro is coming under fire.  Edel Tully of UBS said, “Gold is trying to establish a foothold around the mid-$1,700s as we step into what is traditionally the busy season for Gold demand in India.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

• Gold, $1,742.30, Down $10.20.
• Silver, $32.91, Down $0.34.