The Daily Nugget – Watch Gold Today

This morning, gold has managed to halt its four-day slide as it awaits the outcome of the FOMC meeting later this afternoon. Despite officials recently expressing concern over the effects, we expect the Committee will agree to continue on with the $85bn bond-buying program given unemployment rates are yet to show any positive changes.

Should this be the case, we do not expect the gold or silver price to leap significantly higher, but it will reaffirm sentiment in their safe-haven status away from central banks’ policy decisions.

Do look out for the final estimate of US GDP in Q4 2012, as well as the FOMC interest decision, as these will affect gold prices. However, buoyant US data and stocks are preventing gold from breaking out of its tight range at present. The S&P 500 remains on track to post its biggest monthly gain since October 2011 and the DJIA is flirting with 14,000 whilst the Case-Shiller index grew 5.5% in the year to November 2012.

Platinum appears to be taking the Amplats news from earlier in the week in its stride, and has risen for the second straight session in a row.

Silver was probably the most boring of all the metals yesterday as it remained flat. However, keep an eye out for it as it is expected to see significant demand increase in India this year, according to India’s Gems and Jewellery Export Promotion Council. This prediction is most likely down to the impact expected on gold demand following on from customs duty being added on.

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