“Gold Prices Rise Ahead of Fed”
“Gold prices were continuing their climb to $1,300 an ounce as investors bet on the Federal Reserve announcing another round of quantitative easing on Tuesday. If the Fed decides to buy more government bonds and expand the size of its balance sheet, it means the central bank will also need to run its printing presses.
More U.S. dollars in circulation would devalue the currency and make gold even more attractive as a form of money that retains some value. If the Fed doesn’t announce more monetary easing, traders might rotate out of gold for riskier assets in the short-term, but the expectation is that the Fed will commit to this course of action, if not Tuesday then soon.” Read more.
“Gold Prices Rise Ahead of Fed”
Alix Steel
The Street, September 20, 2010.
Image by graur codrin / FreeDigitalPhotos.net.
