Markets rallied sharply as the FOMC announced a third round of Quantitative Easing in the form of Mortgage Bond buying, buying $40 billion MBS monthly and to continue operation twist.
The news rallied markets across the board with spot gold jumping $25 is a matter of minutes after the news release. The metal traded to a 6 month high of $1773. Crude oil jumped more than $1, while Equities moved over higher over the QE3 announcement.
TORONTO, Sept. 12, 2012 /CNW/ - Cache Metals Inc., Toronto Based bullion retailer of Gold, Silver and other Precious Metals, launches a new online store: https://www.cachemetals.com/store/. Clients can now buy Gold, Silver and other Precious Metals securely online at wholesale prices. Online payment methods include; Credit Card, Interac Online, as well as Bank Wire, Bank Draft and Money order.
_60.png "Cache Metals Gold & Silver Daily Market Report")
Precious metals traded higher ahead of the Federal Open Market Committee (FOMC) meeting slated for September 12-13 and taking currency cues with the Euro pushing to 1.2871.
It was a relatively quiet day on the metals markets as spot gold traded in a narrow range with a slight bias to the upside. The major focus is on the FOMC meeting slated for September 12-13. The yellow metal moved higher in early trade to $1738 as the Euro strengthened vs. the green back.
The market question is QE or no QE, after today it would seem that the market is fully expecting QE. Spot gold rallied $40 to its highest level in 6 months to $1742 amid poor U.S Nonfarm payrolls.
Spot gold finally broke higher to clear $1700 in European trade over night on speculation of European Central Bank president Mario Draghi's speech.
The much anticipated European Central Bank press conference with President Mario Draghi has dominated the headlines as well as the price action, spot gold jumped to $1716 prior to the ECB's president's speech as he took the microphone the metal sold off to just below $1700. Some highlights of the Draghi's speech.....
Spot gold pushed close $1700 as poor U.S data revived hopes of further Quantitative easing. Last week Fed Chairman Ben Bernanke left QE3 on the table as an option to jump start a sluggish economy.
After starting the session relatively higher, metals succumbed to profit taking ahead of Fed Chairman Ben Bernanke's speech at Jackson Hole symposium of central bankers, which started today.
It was a range trading day for precious metals as traders eye Jackson Hole meeting for the next QE3 statement.
Spot gold was range bound in the afternoon session touching $1672, before scaling back. The bullion remains at a 4 month high as Central bankers and finance ministers from around the world are set to meet at Jackson Hole, Wyoming on Aug. 31 and Sept. 1. Investors expect hints; if not the launching of QE3; from Fed chairman Ben Bernanke on steps the central bank might take to jump start a U.S economy that has remained sluggish.
After a 7 day rally precious metals took a breather consolidating. The yellow metal touched a 2 month high yesterday of $1674 on the back of a much stronger euro and quite possibly further quantitative easing at the next Fed meeting.
Precious metals jumped to their highest level in 2 months on speculation that European Central Bank may take further steps to stop the Eurozone debt contagion.
USA
Canada
© 2012 Cache Metals Inc. | Canada's Gold & Silver Specialists.
Buy Gold Online Buy Silver Online Buy Platinum & Buy Palladium Buy Bullion Bars & Coins Online
Toronto Retail Location l Buy Gold & Silver in Toronto
215B Davenport Road l Toronto l Ontario l Canada
Tel: 416.916.6660 l Toll Free:1.877.916.6670 | Fax: 416.916.6702
Hours Map Toronto Gold & Silver Store
Cache Metals, an online gold and silver bullion dealer, services clients across Canada & the USA, including; Toronto, Vancouver, Montreal, New York, California, Georgia, New Jersey, Ohio, Tennessee, Montana, Florida, Boston, Detroit. Buy gold and silver online at wholesale prices.
As with all investments, the price of precious metals changes rapidly, and as such should be considered volatile. Upon entering the metals market, the risk of loss is solely that of the client. Only individuals who are capable of sustaining a capital loss should consider purchasing precious metals. Acquisitions in precious metals which are financed are considered high risk
