Gold Surges to Record Near $1,300/oz on Fed Statement

Gold

Gold surged after the Fed statement yesterday indicating that interest rates would remain at 0 to 0.25% and will remain exceptionally low for an extended period. No change in policy was announced but some market participants have interpreted the statement to mean that the Federal Reserve may embark on a new round of quantitative easing. The dollar fell sharply on the announcement and gold surged from $1,272.40/oz to a new record over $1,290/oz or 1% in the following hour. Silver surged more, rising from $20.62/oz to over $21.00/oz or 2% in the minutes after the announcement – a new 30 year high (see long term quarterly silver chart below).

Gold is currently trading at $1,291.30/oz, €964.87/oz, £823.71/oz.

Gold in USD – 5 Day (Tick). Click on image to view full size.

The dollar has fallen to near 80.0 on the US Dollar index after the Federal Reserve’s "prepared to provide additional accommodation if needed" comments. Some investors are selling dollar assets as they are receiving poor yields for dollar denominated assets despite rising risk and concerns that QE2 could lead to dollar debasement.
 
Gold has stayed well bid and close to yesterdays record highs overnight and this morning. $1,300/oz would seem "backed in the cake" in the coming days but there could be a pullback from the $1,300/oz level when reached. However, gold’s bull market looks set to continue until interest rates return to more normal levels and concerns about a double dip recession and sovereign debt issues abate.

Silver

Silver is currently trading at $21.05/oz, €15.74/oz and £13.43/oz.

Silver in USD – 40 Years (Quarterly). Click on image to view full size.

Platinum Group Metals

Platinum is trading at $1,624.50/oz, palladium is at $538/oz and rhodium is at $2,300/oz.

Mark OByrne

Also on news-goldcore-com

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

US Federal Reserve Sticks To The Script But For How Long?

Those watching the gold price and price of silver will have noticed the sharp uptick following the Federal Reserve’s announcement, yesterday. This was despite the Fed doing exactly what everyone expected them to do. For now, the Federal Reserve is sticking to its relatively well-telegraphed plan but how long will it be until they need […]

READ MORE

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

US Federal Reserve Sticks To The Script But For How Long?

Those watching the gold price and price of silver will have noticed the sharp uptick following the Federal Reserve’s announcement, yesterday. This was despite the Fed doing exactly what everyone expected them to do. For now, the Federal Reserve is sticking to its relatively well-telegraphed plan but how long will it be until they need […]

READ MORE

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE