Gold Price Slides, Fed to Extend “Twist” but No QE3!

The gold price fell $22.55, or 1.4%, to $1,597.55 per ounce on Wednesday ahead of the decision from today’s Fed meeting.  The price of gold moved steadily lower in overnight trading, despite a lack of strength in the U.S. dollar, as it held near unchanged against a basket of foreign currencies.

The gold price suffered this morning from a growing view among market investors and economists that Ben Bernanke and his fellow central bankers will announce additional easing measures, but will not expand the Fed’s balance sheet via a third round of quantitative easing (QE3).

Josh Feinman, global chief economist for DB Advisors, the asset management unit of Deutsche Bank AG, stated that “Extending Operation Twist is the path of least resistance.  It would be an extension of something we have in place, so it would be more seamless, and it doesn’t complicate exit strategies as much because it’s not expanding the balance sheet.”

PNC Financial Services Group’s chief economist, Stuart Hoffman, echoed Feinman’s forecast.  “The economy still needs monetary stimulus, though QE3 seems to be a bridge too far,” Hoffman wrote in a note to clients. “Extending Operation Twist signals the Fed is on the job, yet it is not as aggressive as quantitative easing.”


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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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