Goldman went on to provide analysis that augurs well for higher gold prices

The ascent in the gold price raged on Thursday morning, rising to $1,806.45 per ounce. The price of gold climbed alongside the U.S. dollar as investor risk aversion re-emerged in global equity markets.

Although the gold price pared its gains following the FOMC announcement, it remained firmly in positive territory and close to its all-time record high. The price of gold was supported by the fact that the Bernanke-led Fed reiterated its commitment to fighting deflation and left the door open for further easing measures.

Commenting on the Fed statement, analysts at Goldman Sachs wrote in a note to clients that “The committee adopted an even easier policy stance than expected…Although some form of strengthening of the guidance language was expected and the new guidance remains conditional on the economic outlook, we see this step as a dovish surprise.”

Goldman went on to provide analysis that augurs well for higher gold prices. “The committee effectively signaled an easing bias saying…In our view, this leaves open the possibility of further asset purchases (‘QE3′) should the economic outlook deteriorate further from here.”


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