Gold Pares Losses as Fed Tapering Questioned (GLD) (IAU) (SLV)
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Gold and Silver jumped on Monday, reversing a decline that pushed gold below $1350 per ounce in early trading. Gains were tied in part to comments from Dallas Fed president Richard Fisher. Speaking on CNBC, Fisher, a known hawk, said going "cold turkey" and stopping MBS purchases would be too violent for the market.
Chicago Fed president Charles Evans also spoke today, saying Fed Monetary policy was appropriate for now. He added that Fed policy should "achieve escape velocity" in 2014. Evans said the Fed may let asset purchases "run off."
Taken together, comments may suggest so-called tapering may not come as quickly as some expect. Minutes from the Fed's meeting on April 30th will be released on Wednesday and should help provide additional clarity on Fed policy.
Commenting, RBS strategists Edward Marrinan said he thinks Fed hurdles to tapering appear to be quite high, and he doesn't expect an adjustment to QE purchases until late 2013.
For now, the Gold rally has cooled and prices appear stable at $1385 per ounce. SPDR Gold Shares ETF (NYSE: GLD) and iShares Gold Trust ETF (NYSE: IAU) are higher by 2 percent. iShares Silver Trust (NYSE: SLV) gained 2.5 percent.
Chicago Fed president Charles Evans also spoke today, saying Fed Monetary policy was appropriate for now. He added that Fed policy should "achieve escape velocity" in 2014. Evans said the Fed may let asset purchases "run off."
Taken together, comments may suggest so-called tapering may not come as quickly as some expect. Minutes from the Fed's meeting on April 30th will be released on Wednesday and should help provide additional clarity on Fed policy.
Commenting, RBS strategists Edward Marrinan said he thinks Fed hurdles to tapering appear to be quite high, and he doesn't expect an adjustment to QE purchases until late 2013.
For now, the Gold rally has cooled and prices appear stable at $1385 per ounce. SPDR Gold Shares ETF (NYSE: GLD) and iShares Gold Trust ETF (NYSE: IAU) are higher by 2 percent. iShares Silver Trust (NYSE: SLV) gained 2.5 percent.
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