The prices of gold and silver spiked during August to their highest levels in recent months. Looking forward, will gold and silver continue their upward trend? Let’s examine the latest developments that may affect the progress of gold (GLD) and silver (SLV) prices.
FOMC Meeting and QE3 Tapering
A lot of guesses have been made in the past several months regarding the Federal Reserve’s next move. The speculations have started after Chairman of the Federal Reserve, Ben Bernanke, first introduced the idea that the Fed may start tapering QE3 in 2013 and end it in the first half of 2014. Since then, analysts and precious metals investors tried to figure the Fed’s next move by examining the progress of the U.S economy: If the U.S shows signs of progress, the chances of the Fed tapering QE3 rise. Last week’s, U.S non-farm payroll report didn’t meet expectations even though the number of jobs added was well above the natural population growth. Despite the slow progress of the U.S labor force, many analysts still think the Fed will start cutting down its asset purchase program in the forthcoming FOMC meeting, which will be held on September 17-18.
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