«
»

Gold Prices Jump on Feds Decision to Extend Low Interest Rates into 2014

Last night the US Federal Market Open Committee announced that it is likely to keep interest rates down until late 2014. It previously announced rates would stay low until mid 2013. This latest statement leaves the door open for the possibility of more Quantitative Easing, after Bernanke has effectively told everyone he will keep money as cheap for as long as he can.

Accommodative monetary policy is bullish for gold and as the US Dollar fell, equities and the Euro have rallied with gold. Of course at the moment a weak Dollar is helpful for the US as its manufacturing sector recovery and currency wars continue.

  • Author: Eytan Krips

Tags: , , , , ,

This entry was posted on Thursday, January 26th, 2012 at 11:46 am and is filed under Economy, Finance, Gold, Gold Bullion, Investing. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Comments are closed.