2010-11-09

Gold price just broken USD 1,400 level.

The gold market rallied $60.10/oz on Thursday and Friday in a reaction to the Fed’s QE2 package unveiled on Wednesday afternoon. The initial reaction on Wednesday was quite small and made the event seem inconsequential to prices. However, an op-ed article in the Washington Post the next day provided the impression that the Fed would continue to ease monetary policy until the value of asset markets begin to rise and boost consumers’ confidence.

That gave a green light to most assets to make strong gains, and for gold prices to break out to record highs. Gold advanced $45.50. Gains in energy prices provided inflation suggestions to gold, suggesting that it would be needed as a hedge. Later on Thursday, Pres Obama said that he is open to extending the tax cuts to all income groups, and the Fed said it would consider allowing stronger banks to raise their dividend payouts.

The events created the impression that the economy was recovering. Up to date, gold price just broken USD 1,400 level.

0 comments:

Related Posts Plugin for WordPress, Blogger...

KLSE Info Zone

About This Blog

Malaysia Gold Investment

I found Gold Investment in Malaysia is a vary good tools to make profit when the market is down. I also found that Gold Price go up and down more slower compare to share market so to make money in long term, Gold is the right tools. This blog is all about Malaysia Gold Info and the way to make profi

Blog Malaysia

BlogMalaysia.com

  © Free Blogger Templates 'Greenery' by Ourblogtemplates.com 2008

Back to TOP