Gold Advances Ahead of Key Fed Meeting

  • Posted Tuesday, March 14, 2017 at 08:32 AM

Los Angeles CA, March 14 (Tangible Investments) - by James O'Dell - Precious metals prices were modestly lower in early trading on Tuesday, with Gold up 0.08 percent to $1,204.70 an ounce after easing $0.80 or 0.08 percent on Monday to close at $1,203.70 an ounce.

The price of Silver is down 0.09 percent to $16.94 an ounce after easing $0.06 or 0.35 percent on Monday to close at $16.96 an ounce, while the Gold/Silver ratio, the measure of the number of Silver ounces needed to buy an ounce of Gold, rose to 70.97. Platinum is down 0.21 percent to $936.00 an ounce and Palladium is down 1.06 percent to $746.00.

Gold continued to hold steady above the $1200 an ounce level in early trading on Tuesday as the key two-day Federal Open Market Committee meeting gets under way. The Fed is widely expected to raise interest rates by 25 basis points at this week's policy meeting.

"We see some stabilization (in Gold). The Fed hikes are roughly priced in. Real yields are not rising that fast therefore Gold is protected on the downside," said ABN Amro analyst Georgette Boele.

"Leading into Wednesday's (Fed) decision, participants will be looking for Gold to initially hold $1,200, while below this broad interest around $1,190-$1,195 is expected to restrict further declines," said MKS PAMP Group trader Sam Laughlin.

Meanwhile, in Europe, the British pound fell to a two-month low against the U.S. dollar, after Parliament passed Brexit legislation setting the stage for British Prime Minister May to negotiate the removal of Britain from the European Union (EU).

Also, the election in the Netherlands takes place on Wednesday and is expected to “take center stage as it effectively acts as a barometer for populist attitudes,” across the EU, says FXTM chief market strategist Hussein Sayed.

“The government of Netherlands is based on proportional representation, so even if the Party of Freedom won the largest number of seats, this won’t change the country’s politics a lot. However, this will confirm that populism is on the rise, and boosts the chances of Marine Le-Pen winning the French elections,” said Sayed. “What does this mean for investors? ‘Fasten your seatbelts; it's going to be a bumpy ride.’”

It's important to protect your hard earned wealth during these times of economic and geopolitical uncertainty, and at Tangible Investments, it doesn't matter whether you're new to precious metals or a seasoned veteran, you will always be dealing with top industry experts.

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