Gold prices ease on caution ahead of Fed statement

American stock futures are trading slightly higher this morning, while the Gold price has dropped.  This movement comes ahead of a highly-anticipated Federal Reserve policy decision which could bring about a new round of quantitative easing.  Nick Beecroft of Saxo Capital Markets U.K. explained that while QE is the hope of the markets, the Fed is more likely to announce an extension of Operation Twist, its bond-buying program.  “This will probably disappoint equity markets, which seem to be expecting ‘another shot of heroin,’” he said.

European leaders fleshed out a list of concrete steps to potentially solve its debt crisis in front of a Group of 20 (G20) summit, with the G20 leaders supporting what the eurozone brought to the table.  U.S.A. President Barack Obama said that it was clear that the leaders know what steps need to be taken to shore up the debt crisis, adding, “None of them are going to be a silver bullet that solves this thing entirely … in the next week or two weeks or two months, but each step points to the fact that Europe is moving towards further integration rather than break-up.”

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

  • Gold – $1,605.60 – Down $18.10.
  • Silver – $28.20 – Down $0.27.
  • Platinum – $1,459.90 – Down $22.60.
  • Palladium – $624.90 – Down $5.50.