Gold Prices Steady Ahead of FOMC Meeting
Posted by Brian Ford on July 09, 2014
Minutes and notes from the Federal Open Market Committee’s last meeting are due out today, and gold investors are, for the most part, holding steady as they wait to see if any revelations about the economy, monetary policy changes, or important data will be released to the public. As of 1pm CST the gold spot price had climbed to $3.70 to $1,324.60 per ounce, according to COMEX.
Trading has been brisk yet choppy today, as technical traders, bargain-hunters, and profit-takers battle for the technical advantage. Very little economic data is expected this week, meaning all eyes are placed squarely on the FOMC minutes. Some analysts believe the Fed will cut another $10 billion from its monthly asset buying program, Operation Twist. Others have said that the Fed’s prime interest rate could be discussed today, although an increase in that rate is unlikely.
The geo-political unrest in the Ukraine, Syria and Israel could also motivate the gold market. Historically, war and political unrest cause fear-based gold buying, but analysts believe any such buying would only provide a temporary boost to the gold spot price, a boost that in the past has been quickly negated by opportunistic profit-seekers.
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