[video] Quick Take: Gold: Pause After Fed Minutes
NEW YORK (TheStreet) -- With the minutes from the Federal Reserve's last Federal Open Market Committee meeting scheduled to be released Wednesday afternoon, gold has been relatively calm. TheStreet's Joe Deaux is with Mike McGlone, director of research at ETF Securities, discussing his expectations from the Fed.
Some Fed governors have recently hinted that the Fed's bond-buying program will begin to ease in September. What investors are dying to know is whether it will happen in September, October, or anytime in 2013.
One thing's for certain, though: Tapering will commence.
McGlone said current gold prices are near the same levels they were back when "QE2" was announced. Since then, the precious metals have had a sizable pullback from the highs near $1,900.He noted that equities have not had that same correction and that's what many investors are worried about. McGlone added that gold has been flushed from the hands of speculative traders and over to strategic investors, who plan to hold for a longer period of time. While gold does make for solid portfolio insurance, silver demand is making record highs, due to its industrial uses. Platinum and palladium have also seen boosts in demand. McGlone concluded that the market has already priced in some form of tapering and that a pullback in the precious metals due to tapering talk should represent a buying opportunity. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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