Gold and Platinum Climbing in Anticipation of Fed Meeting

September 12, 2012 James Heinsman In the News

As the Federal Open Market Committee begins its two-day meeting today, investors are sending the price of gold and platinum up in anticipation of the news that the Fed will introduce its third round of quantitative easing, known as QE3.

Companies that trade in precious metals such as Bullion Direct and Monex are seeing an increase in buying of a list of metals such as gold, platinum and silver. At its high point, gold had risen 0.3 percent to approaching a six-month high of $1,735.45 per ounce. Platinum seems to be heading for a rally which will have the best staying power it is shown in over one year.

The Feds are thinking long and hard about QE3, which is expected to boost the US economy which has been stagnating. The flow of cash into the turtle-paced economy weakens the dollar, which showed a four-month low against the euro yesterday. Between December 2008 and June 2011 the Feds instituted two rounds of QE, buying $2.3 trillion of the federal debt, which caused gold to climb to almost twice its value during that time frame.

“Prices were higher on speculation that the Federal Reserve will announce additional stimulus,” Lachlan Shaw, an analyst at Commonwealth Bank of Australia, wrote. “Prices also increased as the U.S. dollar weakened.”

Bullion Direct, Gold, Gold Prices,

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