Gold & Silver Recap: Is More QE Already on the Way?

On Monday, gold (NYSEARCA:GLD) futures for December delivery fell $13.40 to settle at $1,764.60 per ounce, while silver (NYSEARCA:SLV) dropped 65 cents to close at $33.98.

Both precious metals appear to be consolidating after outperforming other assets over the past several weeks. However, some analysts are already predicting that the Federal Reserve will need to do more than the recently announced unlimited quantitative easing program, potentially serving as a huge catalyst to gold and silver prices.

In-depth and Insightful Analysis: Learn More About the Gold & Silver Premium>>

Adam Parker, Morgan Stanley’s chief U.S. equity strategist, issued a report called “QE3- More is Required.” In the report, he explains, “QE3 will likely be insufficient to significantly boost equity markets and we wouldn’t be at all surprised to see the Fed dramatically augment this program (i.e., QE4) before year-end, particularly if economic and corporate news continue to deteriorate as they have over the past few weeks.”

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged 0.50 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) declined 1.4 percent. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Barrick Gold (NYSE:ABX) both dropped more than 3 percent. Meanwhile, silver names such as First Majestic Silver (NYSE:AG) and Endeavour Silver (NYSE:EXK) fell 4.6 percent and 4.5 percent, respectively.

Investor Insight: Fundamental and Technical Indicators Glitter for Gold

If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS