Gold futures are rising in Asia this morning (Dec 16) after falling towards $1,760 shortly following the Fed announcement.
- Gold prices rose $5.4, or 0.30%, to $1,785.50 per ounce.
- Silver is up 10 cents, or 0.45%, at $22.26 an ounce.
- Platinum is up $4, or 0.44%, at $930 an ounce.
- Palladium rises $82, or 5.34%, to $1,767 an ounce.
The Fed has announced it will accelerate its QE tapering and instead of $15 billion, cut $30 billion per month. In addition, the Fed announced the first interest rate hikes for the middle of next year. The Fed is signaling that the rising inflation has been tackled wrong so far and is now trying to save the situation. PPI data this week which had risen by 7.9% show further inflationary pressure for consumers downstream.
When the news was announced, paper gold prices fell towards $1,760 but were able to quickly rebound towards $1,780. In addition, the stock markets closed yesterday in the plus. Perhaps this is a sign that the markets have already expected this announcement, but should be taken with caution. The stock markets have reacted in the short past very sensitive to liquidity cuts which could mean downward pressure with regard to 2022.
Next up this week are the meetings of the other central banks: The ECB and BoE meet today, December 16, and the BOJ the next day.
The Spot Market is Open
Thursday, December 16, 2021
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 10.40 | 1,782.40 1,783.40 | +5.10 0.29% | 1,776.20 1,785.50 |
| Silver 10.40 | 22.13 22.23 | +0.06 0.27% | 21.92 22.27 |
| Platinum 10.40 | 919.00 929.00 | +3.00 0.33% | 914.00 931.00 |
| Palladium 10.40 | 1,608.00 1,758.00 | +73.00 4.76% | 1,535.00 1,779.00 |
| Rhodium 06.00 | 12,850.00 14,850.00 | 0.00 0.00% | 12,850.00 14,850.00 |