As I have expected, in the last Federal Open Market Committee meeting, which was held today, December 13th, there were no surprises and Committee decided to maintain its current monetary policy and didn’t introduce a new stimulus plan such as quantitative easing plan three.
The FOMC stated in its statement that the US is starting to show some economic progress as the labor market is starting to show some signs of recovery even though the unemployment is still high. The Committee still sees the U.S. economy growing at a slow pace (in the third quarter the U.S. GDP grew by 2% (Q-o-Q)) in the quarters to come.
The FOMC issued a press release stating that the Fed will continue its long term securities purchase plan and maintain the low interest rates of 0 to 0.25% at least until mid-2013.
Therefore the FOMC didn’t come up with a new stimulus plan despite the market’s expectations of QE3. As a result, the precious metals prices resumed their downward trend as gold and silver are traded sharply down along with the Euro against the USD.
Euros to US dollar exchange rate is currently traded up at 1.3016 a 1.3037% decrease as of 20:42*.
Current gold price, short term futures (January 2012 delivery) is traded at $1,629.8 per t oz. a $38.4 decrease as of 20:37*.
Current silver price, short term futures (January 2012 delivery) is traded at $30.515 per t oz. a $0.487 decrease as of 20:37*.
For further reading: