As anticipated, the FOMC tapered again its asset purchase program, AKA QE3, from $55 billion a month to $45 billion a month. This is the fourth consecutive tapering decision, which first started back in the last FOMC meeting of 2013. This time, there was no press conference or any update to the Fed’s economic outlook.
This decision didn’t have a strong impact on the financial markets as it was widely expected. Following the recent tapering, the price of gold inched down, while silver declined by 1.9%. The U.S dollar slightly depreciated against the Euro and Japanese yen. The equities market traded up.
The table below shows the reaction of the precious metals markets to the recent FOMC decision and past decisions.
U.S economy isn’t going anywhere
In other news, the U.S GDP didn’t improve by much in the past: According to a recent update, the U.S GDP inched up by 0.1% in the past quarter (annual growth rate). This growth rate was very low and didn’t even reach the market’s expectation. This news is likely to pressure down the U.S dollar and perhaps pull back up precious metals prices.
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