Gold and silver have done little moving so far this week, as the latest FOMC meeting is taking a majority of investor attention. Though the meeting is not expected to yield any major changes to monetary policy, people will still be analyzing every piece of information discussed in an attempt to get a clearer image of when a shift to monetary policy might occur.
This week is also going to be full of US economic data, however it is not likely that this data will end up affecting precious metals greatly.
Every time the Federal Open Market Committee convenes for a meeting the whole investing world pays attention. This time is no different, though unlike previous meetings the outcome of this one has been more or less decided upon by the public for some time now. As was expected, the FOMC decided that they will not alter the Fed's $85 billion bond-buying program, also known as Quantitative Easing.
Most members of the FOMC agreed that the US economy has been showing some signs of growth, and that the unemployment rate was falling, however neither of those actions have been strong enough to merit a tapering of QE. The Fed once more made it clear that they want to see the unemployment rate fall to about 6.5 before they touch monetary policy. Currently, the unemployment rate is at 7.2%.
At this point investors and market experts are beginning to believe that QE will not be tapered until the end of 2014's first quarter, or sometime in the second. Because Ben Bernanke is not having a press conference after this FOMC meeting, there are going to be few ways of finding out any solid information regarding QE's potential alteration in the future.
October's employment report indicated a non-farm payroll increase of about 130,000, which was 20,000 less than what was expected. The US Dollar took a hit in response to this news and precious metals were given a slight boost.