|
|
Sanctions Imposed On Russia As Fed Meets Posted March 18th, 2014
Los Angeles CA, Mar 18 (Tangible Investments) - by James O’Dell - The price of Gold dipped on Monday, easing $16.15 or 1.17 percent to close at $1,365.80 an ounce, as shorter term investors took profits after the crisis in Crimea cooled somewhat when the referendum for secession from Ukraine ended without violence. The price of Silver slipped a modest $0.04 or 0.19 percent to close at $21.17 an ounce.
After the outcome of the referendum showed more than 90 percent of Crimean voters chose to split from Ukraine and join the Russian Federation, it was denounced by the U.S. as illegitimate. Russian President Putin agreed with the vote and quickly signed a decree that recognizes the Crimea region as a sovereign state, while the U.S. and European Union (EU) began the immediate imposition of sanctions against Russian and Crimean officials deemed to be responsible for the wresting of Crimea from Ukraine.
"In terms of our outlook, we doubt that the sanctions imposed by the West are over and suspect that the Europeans and the U.S. will gradually need to step up the pressure on the Russians, reluctant as they are to do so," says INTL FC Stone, in a report. "This will mean that the move higher in gold is likely not over, but perhaps just seeing a temporary setback."
Meanwhile, the Federal Open Market Committee (FOMC) meeting begins on Tuesday with analysts expecting another $10 billion taper of the Fed’s massive quantitative easing ((QE) program. It's the language, however, that investors will be watching, as analysts at BNP Paribas expect the Fed to shift to a more qualitative guidance than quantitative as it is currently. The analysts also predict that the Fed will postpone its first interest rate hike until sometime closer to 2016.
Analysts at Nomura agreed, adding that as the Fed adjusts forward guidance, the FOMC may “want to continue to signal that the first rate hike is still a ways off… (and) we suspect that it will want to continue to signal that accommodative policy will be appropriate for some time after the current asset purchase program ends.”
Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2014. Call Toll Free 1.800.741.5014 and allow the friendly staff at Tangible Investments (learn about us here), owned and operated by world-renowned coin expert Silvano DiGenova, to assist you in your next purchase or sale. We hope you will share our site with your friends on Twitter and Facebook, but whatever you do, don't leave the site before claiming your Free Coin.
|
|
|