The Ottumwa Courier

Business

June 25, 2013

Fed's words melt metals

The U.S. Federal Reserve continued indicating in an announcement last week that it was going to end its stimulus program.

Although a definite timeline has not been set, Federal Reserve Chairman Ben Bernanke has begun talking about an end to the $85 billion per month stimulus program.

Investors had previously piled into the gold and silver markets on the expectation that Fed stimulus would cause inflation, pushing prices to record high levels.

Over the last year, as inflation remained low and stimulus’ end was in sight, prices have dropped sharply.

Last week’s announcement caused another plunge in the metals with gold falling more than $100 per ounce (-7.6 percent) and silver sliding as much as $2.38 per ounce (-11 percent) in the aftermath.

Both markets fell to the lowest price in over two years.

As of midday Friday, gold for June delivery was worth $1,293.

Worse yet, silver stood at $19.96, down a staggering 60 percent from its all-time high set in 2011.

Going forward, some analysts believe that gold and silver will be traded more like industrial commodities and less like investment assets, possibly making them much more reactive to industrial demand than central bank actions.

Financial markets tank

Alongside gold and silver, other financial markets tanked as well.

Stock markets, foreign currencies, crude oil and U.S. bonds all plummeted on the expectation that diminished stimulus would slow economic growth.

Crude oil, which rallied the week before on Mideast concerns, had the largest percentage move, dropping as much as $5.50 per barrel (-5.6 percent) in the wake of the Fed announcement.

Crude prices were also dragged lower by rising stockpiles and weak economic data from China.

As of midday Friday, crude oil for delivery in August was worth $93.30 per barrel, the lowest price since early June. In coming weeks, geopolitical concerns may begin driving the crude oil market again, especially if the conflict in Syria spills across borders.

Opinions are solely the writer’s. Walt Breitinger is a commodity futures broker based out of Silver Lake, Kan. He can be reached at 800-411-3888 or www.paragoninvestments.com. This is not a solicitation of any order to buy or sell any market.

1
Text Only
Business
  • Local grains for July 23, 2014 (Per bushel) No. 2 No. 1 Corn Soyb WhtCargill 3.62Farmer’s 3.60 12.27DFS Osky 3.57 12.47Reiff Grain 3.54 12.20Wapello Co. 3.50 12.17Two Rivers 3.40 12.23Tri-County 3.58 12.26 4.53Troy Blfd 3.59 12.26 4.39Troy Bkbg 3.48 12.16 4.37

    July 23, 2014

  • 0723 OTT Business grant bw photo -L -T SIEC, Co-Bank match trails grant funds BLOOMFIELD — Southern Iowa Electric Cooperative and Co-Bank have awarded the Davis County Trails Council $10,000 through Co-Bank’s Sharing Success Matching Grant Program. Co-Bank’s “Sharing Success” matching grant program is designed to celebrate the

    July 22, 2014 2 Photos

  • Local grains for July 22, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 3.66 Farmer’s 3.56 12.18 DFS Osky 3.61 12.39 Reiff Grain 3.54 12.04 Wapello Co. 3.46 11.99 Two Rivers 3.44 12.14 Tri-County 3.60 12.08

    July 21, 2014

  • Local grains for July 19, 2014 (Per bushel) No. 2 No. 1 Corn Soyb WhtCargill 3.76Farmer’s 3.69 12.19DFS Osky 3.71 12.40Reiff Grain 3.64 12.00Wapello Co. 3.56 11.95Two Rivers 3.54 12.15Tri-County 3.60 12.04 4.72Troy Blfd 3.57 12.04 4.66Troy Bkbg 3.59 12.05 4.65

    July 19, 2014

  • Ottumwan one of the best PORTLAND, Ore. — Ottumwa High School graduate David Venables has been recognized as an attorney on the rise. Venables, a 2000 OHS grad, has been named one of the top 2.5 percent of lawyers in the state of Oregon. This is his second consecutive year b

    July 18, 2014

  • Local grains for July 18, 2014 (Per bushel) No. 2 No. 1 Corn Soyb WhtCargill 3.84Farmer’s 3.72 12.17DFS Osky 3.79 12.38Reiff Grain 3.67 12.03Wapello Co. 3.64 11.98Two Rivers 3.63 12.13Tri-County 3.65 12.07 4.95Troy Blfd 3.66 12.07 4.80Troy Bkbg 3.67 12.03 4.87

    July 17, 2014

  • Local grains for July 17, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 3.83 Farmer’s 3.73 12.30 DFS Osky 3.78 12.50 Reiff Grain 3.65 12.15 Wapello Co. 3.63 12.10 Two Rivers 3.61 12.26 Tri-County 3.64

    July 16, 2014

  • Disaster assistance loan available now IOWA CITY — MidWestOne Bank released information this week on a special Disaster Assistance Loan to assist those in Iowa and Western Illinois that have been affected by the rain, floods and storms this season. The MidWestOne Disaster Assistance Loan

    July 16, 2014

  • MHP donating sports physicals proceeds to schools OSKALOOSA — Mahaska Health Partnership is offering school sports physicals throughout the months of July and August for middle and high school athletes.These reduced-rate exams will only be offered on three dates. On the Oskaloosa campus, exams will

    July 15, 2014

  • Local grains for July 16, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 3.79 Farmer’s 3.69 12.18 DFS Osky 3.74 12.35 Reiff Grain 3.61 12.08 Wapello Co. 3.59 12.03 Two Rivers 3.62 12.19 Tri-County 3.60 12.12

    July 15, 2014

Obituaries
Record
Facebook
AP National