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Closing Gold & Silver Market Report – 3/20/2013
March 20, 2013GOLD DOWN SLIGHTLY DESPITE CONTINUED EASING
Gold is down for the first time in five sessions even as Federal Reserve Chairman Ben Bernanke promised to uphold the Fed’s $85 billion in monthly bond purchases. Few are surprised by the Fed’s announcement as the current unemployment rate of 7.7 percent is still far from the 6.5 percent target. Bernanke has committed to maintain the current stimulus program until the U.S. jobless rate has reached the desired target. Some Federal Reserve officials have been open critics of the need for a continuation of such aggressive monetary policy, but the majority of members still see the current easing measures as necessary to impel U.S. economic recovery. Bernanke noted that a scale down of the quantitative easing (QE) program is far from imminent as experts predict desired levels of unemployment will not be reached until at least 2015.
The three-session losing streak for equities ended today as the Fed’s unwavering commitment to QE remains the central factor driving markets. “The Fed essentially did what’s to be expected, which is to reinforce that the economy still needs support,” said Hank Herrmann, chief executive officer of Waddell & Reed Investment Management Co. Past announcements of continued easing have been integral in boosting Precious Metals and stocks, but recent releases have been expected and thus less jarring to Gold and Silver prices in particular. The current price range Gold has settled into is seen as an excellent buying opportunity for many investors as the indefinite perpetuation of loose monetary policy is expected to be bullish for the metal long-term.
At 4:01 p.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,608.50, Down $5.20.
- Silver, $28.87, Down $0.05.
