Metals Price Watch: Gold Steady as Fed Gives No Sign of Immanent Tapering

on Aug 1, 2013
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iNVEZZ.com, Thursday, August 1st: The gold price was steady on Thursday, after the US Federal Reserve gave no sign yesterday that it was close to tapering its bullion-friendly quantitative easing programme. The copper price received a boost with China’s official manufacturing data surpassing market expectations.

**US Gold Price Rises after Fed Statement**
Spot gold was little changed at $1,324.96 an ounce as of 12:31 BST, whereas COMEX gold for December delivery added 0.84 percent to trade at $1,324. The gold price received support yesterday, after the Fed said that it would maintain its $85 billion monthly bond purchases to strengthen the US economy.

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“The expectations of tapering and the forthcoming end of QE are a little premature, but unless the US economy weakens substantially, you can still expect QE to come to an end at some point,” pointed out David Jollie, a Mitsui Precious Metals analyst, as quoted by Reuters, adding that it might not make sense to get back into gold at that point.

Reuters quoted data by the world’s largest gold-backed exchange-traded fund (ETF), New York’ SPDR Gold Shares, which showed that holdings were unchanged for a fifth day on Wednesday.
“On balance, no more gold has been withdrawn from the ETFs in the past six days of trading,” Reuters quoted Commerzbank as saying in a note. “If the ETF outflows were to come to an end, one key factor weighing on the gold price would be eliminated.”

**Platinum, Silver Price Update**
The platinum price rose on Thursday, with spot platinum advancing 0.25 percent to trade at $1,443.09 an ounce. Spot silver was little changed at $19.84, whereas COMEX silver for September delivery rose 0.88 percent to trade at $19.80.
As Reuters has reported, the gold/silver ratio, which measures the number of silver ounces needed to

buy an ounce of gold, held near the previous session’s three-year high at 67.2 with the silver price underperforming.
**Copper Price Nears One-Week High on China PMI**
!m[China PMI Lifts Copper Price ](/uploads/story/4513/thumbs/pic1_inline.jpg)
Copper for delivery in three months gained as much as one percent to trade at $6,950 a metric tonne on the London Metal Exchange (LME), whereas copper for delivery in September climbed 0.6 percent to $3.1355 a pound on the COMEX. The copper price received a boost after the National Bureau of Statistics and China Federation of Logistics and Purchasing said that China’s PMI was at 50.3 in July, up from June’s 50.1 level and surpassing the 49.8 average estimate of analysts polled by Bloomberg.
“We are quite surprised to see the reading standing above 50,” commented Liang Lijuan, an analyst at Cofco Futures Co, as quoted by Bloomberg. “Copper is unlikely to fall below $6,600 now that the Chinese government has pledged to stabilise growth.” China is the world’s largest copper consumer.
In other industrial metals, the aluminium price rose, with LME three-month aluminium adding 1.58 percent to $1,804 per tonne, whereas the zinc price gained 0.38 percent to $1,843 per tonne.

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