Data Dips and Gold Remains Steady Ahead of FOMC

Gold prices hold steady ahead of tomorrow’s FOMC minutes.

Bullion.Directory precious metals analysis 28 October, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics

Gold futures remain steady with financial participants awaiting tomorrow’s FOMC minutes. It is expected that the Fed will taper the remaining asset purchasing in QE 3, while keeping their ultra-low interest rate policy intact for an indefinite period of time.

If the Federal Reserve embraced their “data dependent” perspective of quantitative easing, a lot remains unknown for future policy. Under-performing data continued to roll in this week. Monday’s data was below expectations with pending home sales coming in below expectations (.3 percent v. 5 percent estimate), and the US services PMI data continues to tick lower from yearly highs.

Today, there were a series of durable goods disappointments by the largest margin this year. The S&P/Case-Shiller HPI fell for the fifth consecutive month:

Gold is holding onto $1,228 per toz. as the S&P 500 is loving the poor data, up over 17 points. Silver is positive on the day with a modest gain of .03 per ounce.

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