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18 Sep 2013
The time has come – metals underperforming on FOMC day
FXstreet.com (Chicago) – After months of speculation, it is time for a public release of the Federal Reserve decisions on bond-buying program to boost the US economic recovery.
FOMC day - and Fed tapering?
According to Bloomber’s Aquino, the median estimate of economists surveyed by Bloomberg News, “the FOMC will reduce treasury purchases to $40 billion while continuing to buy $40 billion mortgage backed securities.” Sean Callow, FX strategist at Westpac, states that “Expectations for QE ‘tapering’ look to have been reduced since the poor Aug jobs report but many big Wall Street names continue to expect -$10bn from Treasuries (to $35bn) and in some cases an additional -$5bn from MBS (also to $35bn). This is probably consensus in terms of market positioning, with some leaning to -$10bn in Treasuries only."
Metals recap
Gold trades close to daily lows at $1,305.10 and is offered at $1,306.50 printing highs at $1,310.30 and registering 0.23% lows so far. Silver follows and gives up the $22 zone to trade at $21.76 printing highs at $21.78 and lows at $21.71 and accumulating 0.11% losses. Platinum is flat in gains at trades at $1,422.40 (session highs) with lows at $1,460.60. Copper is up 0.06% and trades at $3.2250 with highs at $3.2315 and lows at $3.2240. Finally, palladium registers losses at 0.23% and trades at $705.30 with highs at $707.65 and lows at $703.75. A lower participation from commercial hedgers indicates the cooling off of risk aversion after a Middle Eastern tension that ended without further violence.
FOMC day - and Fed tapering?
According to Bloomber’s Aquino, the median estimate of economists surveyed by Bloomberg News, “the FOMC will reduce treasury purchases to $40 billion while continuing to buy $40 billion mortgage backed securities.” Sean Callow, FX strategist at Westpac, states that “Expectations for QE ‘tapering’ look to have been reduced since the poor Aug jobs report but many big Wall Street names continue to expect -$10bn from Treasuries (to $35bn) and in some cases an additional -$5bn from MBS (also to $35bn). This is probably consensus in terms of market positioning, with some leaning to -$10bn in Treasuries only."
Metals recap
Gold trades close to daily lows at $1,305.10 and is offered at $1,306.50 printing highs at $1,310.30 and registering 0.23% lows so far. Silver follows and gives up the $22 zone to trade at $21.76 printing highs at $21.78 and lows at $21.71 and accumulating 0.11% losses. Platinum is flat in gains at trades at $1,422.40 (session highs) with lows at $1,460.60. Copper is up 0.06% and trades at $3.2250 with highs at $3.2315 and lows at $3.2240. Finally, palladium registers losses at 0.23% and trades at $705.30 with highs at $707.65 and lows at $703.75. A lower participation from commercial hedgers indicates the cooling off of risk aversion after a Middle Eastern tension that ended without further violence.