QUESTIONS ABOUND FOR THE U.S.A. FEDERIAL RESERVE
With all the talk going into the weekend about the vote in Greece and its effects on Gold, today it seems the answer is still unclear. The initial reaction caused the Gold price to drop, however as reports point to a lack of planning for the eurozone’s future and the talk of quantitative easing here in the United States, Gold rebounded. “The fact that risk appetite has not rebounded more decisively after the Greek elections may suggest that the markets will push for a broader solution for the euro zone, one that would remove the contagion risk from Spain and Italy in particular. Gold seems to be waiting for the Fed meeting on Wednesday. It is more sensitive to central bank action than to variations in risk appetite.” BNP Paribas analyst Anne-Laure Tremblay said.
Worldwide there has been a close eye kept on the economic turmoil in Europe and for good reason. When the future of one of the larger global markets is in question, all global markets are at risk. Every American exporter from chemicals to computers is expecting a drop in the next few months. “The decline in Europe will weaken our exports over the long term,” said Michelle Meyer, a senior U.S. economist at Bank of America Corp. in New York. ”We look for the trade deficit to widen not only to the eurozone but developing economies as well.”
The focus of the precious metals market and many others are set on the Federal Open Market Committee and the comments of Fed Chairman Ben Bernanke. After three years of trying to jump start America’s economy, the same issues continue to arise. Employment, inflation, and consumer confidence are at the forefront of issues that hinder the United States economic recovery. There will be many questions asked on Wednesday and all involved are eager to hear the responses.
At 12:27 p.m. (EDT), the APMEX precious metals spot prices were:
- Gold – $1626.20 – Down – $2.40
- Silver – $28.76- Down – $0.08
- Platinum – $1486.10 – Down – $3.10
- Palladium – $634.10 – Up – $2.70