All-but-one of 49 economic experts polled by news reporters foresee the Fed will purchase US Treasury bonds as well as the $40 billion per month of mortgage-backed securities purchases announced in September. "It's going to become huge and open-ended in size," states Deutsche Bank's main US economist Joseph LaVorgna.
"Fed policymakers view this stimulus as what is required to sustain the economic climate," concurs John Silvia, main economist at Wells Fargo. "If the Fed comes out with $45 billion of bond buying as some analysts have suggested, it might be the spark we need for another gold rally," says Matthew Turner, precious metals strategist at Mitsubishi. "Previous episodes of quantitative easing have experienced a gold rally. The policy ought to increase inflationary expectations, and gold acts as a protection against inflation." Rare Coins, Silver Coins, Gold Coins, Learn more >> http://www.silverpricestoday.cc/
"People have realized that what the Fed has been performing is damaging to price stability," adds Dominic Schnider at UBS Wealth Management, citing powerful gold coin sales in the US Mint last month. The Federal Open Market Committee might on balance turn out to be more inclined in the direction of accommodative monetary policy in 2013, Reuters reports, when Chicago Fed president Charles Evans and also Boston Fed chief Eric Rosengren turn out to be voting members.
Elsewhere in Washington, "there is no deal or anything like it" on the so-called fiscal cliff, based on a Republican leadership aide quoted by reporters, following further negotiations in between the White House and also the workplace of House of Representatives speaker John Boehner Monday.
Silver meantime hovered just above $33 an ounce Tuesday morning in London, in line with exactly where it started the week, as other industrial commodities edged greater. Over in Italy, Prime Minister Mario Monti has followed policies "that had been too German-centric"
Berlusconi has stated he will run in February's election, while Monti, an unelected technocrat, has not however announced his choice.
In Hong Kong meanwhile, premiums paid to above the spot price to purchase gold rose to a five-month high Tuesday, dealers stated. "Chinese purchasing has been picking up," says Dick Poon, Hong Kong general manager at precious metals refiner Heraeus. "The banks wish to maintain some inventory and prepare for the holiday demand around the Chinese Lunar New Year in February." Since refineries have a tendency to close over Christmas and New Year in the West "there most likely will not be a lot of supply about till mid-January,"
China's new loans and M2 cash supply had been lower than most experts expected last month, based on information published Tuesday. "M2 has mirrored financial activity," says Xianfang Ren, Beijing-based senior analyst at IHS Global Insight. "We've felt all along that China would not have a powerful recovery, that there could be a lot of unpredictability along the way."
South Africa's gold output in October was fifty percent what it was a year earlier following a series of strikes and protests by mineworkers, based on information from Statistics South Africa. Turkey meanwhile would have fallen into recession throughout the third quarter were it not for its gold exports, the majority of which go to Iran or the United Arab Emirates, based on Capital Economics chief emerging market segments economist Neil Shearing. How high will silver go? Learn more >> http://silverpricestoday.cc/