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Gold Prices Inch Towards $1300 After Statements from FOMC
The Fed plans to keep low rates moving forward giving gold a boost in investor confidence, statements from the FOMC have added a element of intrique into the direction of the U.S. economy, adding another implication into gold’s strong showing.
In the statement, the FOMC seemed to suggest that from the Fed Funds low rate of 0% to 0.25% investors have been given more insight as well as foresight on the U.S. economy’s direction.
Thomas Schwartz an analyst at Earle Carlton Hughes stated Tuesday after the announcement from the FOMC that “the recent events have prompted investors to have slightly smaller risk concerns as gains across the commodities and equities markets.”
Schwartz went on to emphasize that the tone of the Fed in regards to the situation “triggered a massive amount of dollar sellers and an equal if not stronger number of gold buyers in the overnight hours.”
December delivery of gold rose nearly $17 stabilizing at $1291.10 an ounce on the Comex portion of the NYME. The high for Monday reached $1,298 and a low of $1287.50 was enough to carry investor confidence into the Tuesday trading day.
Spot Gold prices also saw a $2 gain on prices as the attribution of gold is seeing profitable trading.
Gold prices seem to rise each day giving some investors reason to buy into the hype, but more conservative individuals and institution buyers have remained pessimistic about the movements.
However most industry analysts do not seem to see a slowing of gold’s momentum and predictions for the next year have gold seeing prices at $1,325. Gold has been the only commodity as of late to hit continuous all-time highs, something that has not been witnessed in silver, natural gas, or even oil.
Government worries over inflation being too low and keeping rates low in order to provide housing with a boost also keeps the non-interest bearing investment of gold to be more lucrative.
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