Gold Steady As President Obama Increases Sanctions On Russia

  • Posted Tuesday, July 29, 2014 at 08:46 PM

TANGIBLE INVESTMENTS - Los Angeles - by James O'Dell - Gold and Silver prices edged lower on Tuesday, with Gold easing 0.38 percent to $1,300.50 an ounce, while Silver slipped 0.19 percent to $20.55 an ounce as the dollar gained on reports that consumer confidence jumped in July to a near seven year high. The two day Federal Open Market Committee (FOMC) meeting kicks off today, with investors watching for clues as to when the U.S. central bank will begin raising rates.

The Fed will release the policy statement for July on Wednesday at the end of the meeting, but Fed Chair Yellen will have no press conference afterward. "The Fed is pretty much on 'autopilot' at the moment," said Commerzbank in a note. Although, they added, "Any surprising phrasing in [Wednesday's] press release could well spark more dramatic price movements in the wake of the meeting."
 
With geopolitical tensions in Europe and the Middle East supporting Gold, it's the perfect time for investors to own the yellow metal as a safe haven alternative to other financial assets during times of turmoil. Gold gained the most in four months in June as fighting erupted in Ukraine, Iraq and Israel, boosting demand for the precious metal as a haven.
 
“While Gold benefits from geopolitical tensions, such tensions are usually limited in scope, thus making only a mediocre argument to buy Gold. Having said that, I think we are entering an era of increased instability. Such an environment will warrant an expansion risk premium, causing headwinds to most asset prices,” said Axel Merk, of Merk Funds.
 
President Obama announced, just moments ago, a new package of sanctions against Russia, that "will limit access to EU capital markets for Russian State-owned financial institutions, (and) impose an embargo on trade in arms." It is the most severe set of sanctions yet aimed at the very foundations of Russia's economy, including oil and gas, banking, finance, and arms sales.

It's important to protect your hard earned wealth during these times of economic and geopolitical uncertainty, and at Tangible Investments (learn about us here), it doesn't matter whether you're new to precious metals or a seasoned veteran, you will always be dealing with top industry experts. Take a moment and browse our vast selection of valuable collectibles, then call Toll Free 1.800.741.5014 today and let the helpful staff at Tangible Investments assist you in your next purchase or sale. Have you claimed your FREE COIN yet?

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Metal BID ASK CHG$ CHG%
Gold 1231.40 1232.10 $0.90 0.07%
Silver 17.22 17.26 $0.01 0.06%
Platinum 1252.80 1255.80 $5.70 0.45%
Palladium 781.00 784.00 $0.00 0.00%
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