Fed might expand QEII even further

Disappointing US non-farm payrolls figures on Friday saw investors flock to the relative safety of precious metals. Non-farm payrolls rose only 39k in November, a far cry from expectations of a 150k increase. In addition, the unemployment rate unexpectedly increased to 9.8%. The release saw the trade-weighted dollar drop by the most in six weeks, intensifying the rally in precious metals, with silver and palladium leading the charge.

Comments made by Fed Chairman Bernanke, in an interview aired on US television last night, are largely bullish for precious metals. He mentioned the possibility that the Fed might expand QEII even further (beyond the original $600bn announced), citing stubbornly high unemployment as a threat to the sustainability of the US economic recovery. More liquidity means a further boost for precious metals, especially gold, as well as a weaker dollar.

Gold support is at $1,392 and $1,373. Resistance is at $1,425 and $1,437.


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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

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