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Gold Declines 1 Percent On Fed Stimulus News

admin — Wed, 27 Oct 2010 20:33:57 +0000

Gold prices declined 1 percent on news from the Federal Reserve that they would purchase less government debt than originally expected to stimulate growth. The price of gold has declined sharply in relation to a stronger dollar falling back from it’s high of $1380 an ounce earlier this month. The price of gold today hovered around $1322.00 an ounce.

On Wednesday analysts at MF Global said in a note to clients that, “Wall Street may have overplayed its expectations of quantitative easing.”

The Wall Street Journal mentioned that the Fed’s purchase of treasury bonds will most likely be in the few hundred of billions rather than up to a trillion as some analysts has anticipated. The news sent the dollar higher and strengthened the currency throughout its trading session.

U.S. FED authorities plan on meeting next week to discuss policy decisions which will impact the direction of the FED policies for the near future.

Price of Gold Declines

admin — Fri, 15 Oct 2010 16:44:14 +0000

The price of gold declined today on news that the precious metal has been over traded as an alternative to a weakened U.S dollar. Gold had reached a high of $1387 on Thursday during exciting morning trading.

Investors are eagerly waiting for Ben Bernanke the Federal Reserve Chairman to deliver his address on future monetary policy goals today in Boston. If the dollar goes lower on troubling news the price of gold could be supported. Afshin Nabavi the vice president at MKS Finance SA recently said, “The dollar for the time being may go lower” and that will support gold.”

Gold has gained 26 percent this year and is going into the tenth annual year of gains. This is the longest time of increase for gold since the 1920′s. As world economies continue to spend trillions of dollars to dig their way out of weakened economies and stimulate growth metals continue to rally. Speculation that the FED will further increase spending is causing the outlook of the dollar to diminish.

A recent survey by Bloomberg found that 15 out f 19 traders, analysts, and investors, or 79 percent believe gold will continue to gain next week. Three predicted lower gold prices and one was believed gold prices would remain the same.

Update# Federal Reserve Chairman Ben Bernanke said today that there was a case for further monetary easing given low inflation and high unemployment, but he offered no details on the central bank’s next step. At the Boston conference today Bernanke remarked, “There would appear — all else being equal — to be a case for further action.” The Fed will it’s next policy setting meeting in November.

Gold Declines As The Dollar Gains Strength

admin — Tue, 22 Dec 2009 17:31:09 +0000

Gold fell to the lowest levels in 6 1/2 weeks as news that increased home sales boosted the U.S dollar. The stronger dollar pressured metal prices overall into a decline, however the drop was stalled due to bargain hunters. Volume is expected to be mild for the duration of the holiday trading week

On the New York Mercantile Exchange’s Comex division gold for December delivery fell $20.10, or 1.8%. (To read more)