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 Feds 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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