While we don't need the Federal Reserve to tell us the U.S. economy is weak and anemic, gold investors and others were looking to see what they would say and announce, as it would definitely have a temporary impact at minimum, and a longer term one, depending on what they said.
For once the Federal Reserve said they weren't going to do anything at this time, and would wait to see if the economy could heal itself.
Too bad the schizophrenic central bank doesn't retain that policy. But then again, gold prices wouldn't be doing what they are doing if they didn't interfere.
The conclusion of the Federal Reserve wasn't any different than the last FOMC meeting, and that was they were still concerned about the economy, and stood ready to throw more money at it if they thought is is needed.
Like $1.7 trillion thrown down the hole wasn't enough last time.
If there weren't elections coming in November, the spending-addicted Fed would probably have interfered again, but since the Democrats are already going to get hammered, they didn't have the will to do what their addiction pressures them to do.
But gold prices responded to the comments on the weak economy, and they surged quickly once the news of the contents of the meeting were released.
Because it's nothing new, it's doubtful it'll have any significant effect on gold prices, although it does remind everyone of how bad the U.S economy really is.
Gold in the short term should continue to run up on the fundamentals, and the after the elections we should see an announcement from the Fed that they're ready to implement quantitative easing again, which will cause gold to soar price.
Of course that could happen without that, as many other factors outside the U.S., like growing geopolitical stress in Asia, along with the ongoing sovereign debt debacle in Europe, could push gold prices up quickly if and when any new changes come about, which they are almost sure to.
Showing posts with label Federal Open Market Committee. Show all posts
Showing posts with label Federal Open Market Committee. Show all posts
Tuesday, September 21, 2010
Goldcorp (NYSE:GG), Barrick (NYSE:ABX), Newmont (NYSE:NEM) Gain on Record Gold Prices, Fed Meeting Expectations
Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) continue to enjoy the record-breaking gold prices which have helped them to climb along with them. That was no different Monday, as gold prices surged to another record, reaching as high as $1,285 an ounce.
Even though all the largest gold miners increased in value, there was still the sense of things being held back in anticipation of the Fed meeting tomorrow, where everyone will be looking for a clue as to whether or not they're going to throw another round of quantitative easing at the market.
Goldcorp was the largest beneficiary of the largest miners mentioned above, closing at $43.70, gaining $1.04, or 2.44 percent.
Barrick Gold closed at $46.45, an increase of $0.46, or 1.00 percent.
Newmont closed at $63.27, a slight upward tick of $0.26, or 0.41 percent.
If quantitative easing is mentioned in today's Fed meeting, all these figures, especially gold futures, should shoot up to much higher levels.
Even though all the largest gold miners increased in value, there was still the sense of things being held back in anticipation of the Fed meeting tomorrow, where everyone will be looking for a clue as to whether or not they're going to throw another round of quantitative easing at the market.
Goldcorp was the largest beneficiary of the largest miners mentioned above, closing at $43.70, gaining $1.04, or 2.44 percent.
Barrick Gold closed at $46.45, an increase of $0.46, or 1.00 percent.
Newmont closed at $63.27, a slight upward tick of $0.26, or 0.41 percent.
If quantitative easing is mentioned in today's Fed meeting, all these figures, especially gold futures, should shoot up to much higher levels.
Monday, September 20, 2010
Gold Anticipates Tuesday Fed Meeting
Gold investors are waiting in anticipation of the Federal Reserve’s Federal Open Market Committee meeting on Tuesday, as any hint there will be quantitative easing will cause the yellow metal to soar.
Citigroup (NYSE:C) has stated if there is a nod in that direction, gold could hit $1,300 this week, let alone by the end of the year, as many analysts and traders have estimated.
The Federal Reserve has a problem, as it probably doesn't want gold to get too big of a push, as it would remind everyone of their failing policies and the over $1 trillion spent which was a complete waste and ineffective.
On the other hand, the Obama administration and the Democrats have a vested interest, as they haven't been able to resist any event which makes them look like they're doing nothing about it.
with elections coming up soon, there could be pressure on the Fed to announce more spending or quantitative easing to make it look like Obama is attacking the continuing weak economy.
Either way, it seems like they will lose, as the majority of Americans are fed up with the out-of-control spending of American politicians and the Obama administration, and so to continue spending in this political environment is political suicide, but that hasn't stopped the majority of Democrats from continue their spending onslaught.
There's really nothing else the Fed can do, or the Obama administration. The question is will they try anyway. If they do, gold will probably skyrocket extremely quickly, if they don't, the liberal base of Obama will more than likely attack him for doing nothing.
Either way, gold will be the benefactor, and even if the term quantitative easing isn't used, or no decision is made, the Fed has already said they're ready to interfere again, so if gold pulls back, it'll only be temporary, as everyone knows they're drunk with spending, and they can't control themselves.
Citigroup (NYSE:C) has stated if there is a nod in that direction, gold could hit $1,300 this week, let alone by the end of the year, as many analysts and traders have estimated.
The Federal Reserve has a problem, as it probably doesn't want gold to get too big of a push, as it would remind everyone of their failing policies and the over $1 trillion spent which was a complete waste and ineffective.
On the other hand, the Obama administration and the Democrats have a vested interest, as they haven't been able to resist any event which makes them look like they're doing nothing about it.
with elections coming up soon, there could be pressure on the Fed to announce more spending or quantitative easing to make it look like Obama is attacking the continuing weak economy.
Either way, it seems like they will lose, as the majority of Americans are fed up with the out-of-control spending of American politicians and the Obama administration, and so to continue spending in this political environment is political suicide, but that hasn't stopped the majority of Democrats from continue their spending onslaught.
There's really nothing else the Fed can do, or the Obama administration. The question is will they try anyway. If they do, gold will probably skyrocket extremely quickly, if they don't, the liberal base of Obama will more than likely attack him for doing nothing.
Either way, gold will be the benefactor, and even if the term quantitative easing isn't used, or no decision is made, the Fed has already said they're ready to interfere again, so if gold pulls back, it'll only be temporary, as everyone knows they're drunk with spending, and they can't control themselves.
Friday, September 17, 2010
Gold Prices Today Hit Another Record as Rally Continues
Gold prices today surged to another record, as mixed economic data, European sovereign debt, and probably most importantly, fears over a return to quantitative easing by the Federal Reserve, continue to drive the gold price up.
In the middle of the trading session gold futures December delivery moved as high as $1,284.40 an ounce, surpassing the previous intraday record of $1,279.50 an ounce and the record close of $1,273.80 an ounce, both of which happened on Thursday.
While much of this is credited to the lack of governments around the world being able to do anything about it, it's also increasingly related to the fact that a growing number of people believe governments should quit interfering with economies and let the free market sort it out.
With the November meeting of the Federal Open Market Committee expected to result in some comment on quantitative easing, investors are flooding to gold, as each time the idea is put forth, gold prices are strengthened, as when actions are taken it'll continue to debase currencies around the world, especially the U.S. dollar.
In the middle of the trading session gold futures December delivery moved as high as $1,284.40 an ounce, surpassing the previous intraday record of $1,279.50 an ounce and the record close of $1,273.80 an ounce, both of which happened on Thursday.
While much of this is credited to the lack of governments around the world being able to do anything about it, it's also increasingly related to the fact that a growing number of people believe governments should quit interfering with economies and let the free market sort it out.
With the November meeting of the Federal Open Market Committee expected to result in some comment on quantitative easing, investors are flooding to gold, as each time the idea is put forth, gold prices are strengthened, as when actions are taken it'll continue to debase currencies around the world, especially the U.S. dollar.
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