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Trending was in the green as the day came to a close yesterday for the stock market in the United States. The Dow closed up 48 points and had even hit an intraday high earlier when up by 86 points. Both the S&P 500 and the Nasdaq closed the session off with gains as well. Precious metals also had positive days. Gold, Silver, Platinum and Copper price per ounce finished the day in the green also. Gold was up .45% at $1,404.30. Silver was up .55% at $29.79. Platinum was up .98% at $1,713.90 and Copper was higher by .05% at $4.21. The Fed reported at the end of the day that it will move ahead with its plan to pump $600 billion into the economy. As of now, no new changes have been made to the Feds QE2 plans. The central bank also repeated that it believes the economic recovery in the U.S. is still not fast enough as the unemployment rate recently increased. Many anticipated a weaker dollar because of this greenback injection plans. A weaker dollar almost always leads to higher precious metal values due to the often inverse relationship between the two. The dollar is up however, despite the Fed’s rhetoric. The greenback has gained about 5% since against the euro since the Feds last meeting on November 3rd. The weaker dollar was expected to add to inflation worries and lift already high commodity prices. This is still expected. As QE2 pushes forward, the dollar is expected to slide and pressure will be placed on commodity prices like oil and the safe haven precious metal assets. Author: Camillo Zucari
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