Could actions by the Fed trigger dramatic price movements in gold, silver and platinum?
*Financial Times, by Chris Flood, October 30, 2007
“Crude oil prices eased back on Tuesday after hitting a record above $93 a barrel in the previous session while gold consolidated withing striking distance of the key $800 level as traders looked forward to the start of the October interest rate setting meeting of the Federal Reserve.”
“A combination of tight market fundamentals, supply interruptions, mounting geopolitical tensions and strong investment flows have helped push oil prices higher.
Crude prices breached the $93 level for the first time on Monday after Pemex, the state-owned oil company of Mexico, shut about 600,000 barrels a day of oil production, 20 per cent of its total, due to bad weather in the Gulf of Mexico.
Gold retreated to $783.20 a troy ounce after hitting a 28-year high of $794.40 during Monday’s session as traders pared long positions ahead of the Federal Reserve meeting on US interest rates.
Platinum trade at $1,443 a troy ounce, holding just below the record $1,465 reached in the previous session.
The platinum market is now expected to be in a supply deficit this year following interruptions to output in South Africa where a spate of fatal accidents has led the National Union of Mineworkers to threaten strike action.”
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.