The gold price started the week on a tear as bargain hunters put the pedal to the metal on bullish comments from the US Fed chair. Good economic news, however, beggared the price, and by the end of the week gold was struggling again.
Articles Tagged "quantitative easing"
Gold was hammered in the markets today, losing over $40, after the US Federal Reserve indicated that changes to its quantitative easing program are contemplated for March.
The gold price was off to the races again this week, climbing on healthier stock markets and good news out of the European Central Bank.
Forbes reported that the lack of market-moving news and quiet summertime trading are the reasons behind the modest movements in gold. Gold futures for December delivery were up $4.00 an ounce to $1,606.40; spot gold rose $5.00 an ounce to $1,604.50.
Bloomberg reported the drop in the price of gold to $1,584.20 an ounce, upon speculation that Europe's debt crisis will stenghten the dollar.
Business Insider reported South Africa's gold production continued in its decline, dropping a further 2.9% in May.
CNBC reported that gold reached $1,615 per ounce as expectations mounted that central banks would help stimulate the economy by further policy easing.
A look at gold prices suggests that we may be in the midst of buying season.
Gold continued its three day run up $40 per ounce since the start of April. Driven by inflationary fears, political instability and high oil prices, the next key resistance level may be $1500 per ounce. However, as nations raise interest rates, gold may be headed for a correction.
The strengthening of the dollar and rumors of China tightening monetary policy has pushed gold prices down. Some see this as a beginning of a correction for a ‘bubble’ in the gold market, yet many analysts see a continuing positive climate for gold.