The precious metals quotes from UniCredit Research: -The precious metals posted strong gains last week and thereby profited from the weaker USD. The trade-weighted USD index has in the meantime dropped below the uptrend in place since 2012. On Wednesday, the Federal Open Market Committee (FOMC) will hold its seventh regular meeting this year. We assume the press release will not contain any major news. -In September, the financial markets had still expected the Fed to taper its bond purchases, but the general consensus is now that this will not happen before March 2014. The main reasons for this delay are the persisting political uncertainty due to new fiscal policy deadlines, the knock-on effects of the partial government shutdown, the fight over the debt limit, and the weak job creation over the summer months. This could be positive news for the precious metals markets and trigger a further rise in prices. -Investor interest has been rising strongly again, as evidenced by the inflows into the global Gold ETFs. On 22 October,209,000 ounces were purchased - the highest inflow so far this year. We expect a further rise in the price of gold to just shy of USD 1,400 per troy ounce. The price of silver will likely also profit from this and increase to USD 25 per troy ounce.
Posted on: Wed, 30 Oct 2013 10:26:54 +0000
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