Gold’s Long-Term Prospects Improve After Latest FOMC Meeting Posted by Brian Ford on April 09, 2015
The gold spot price fell by as much as $8.90 Thursday morning as the dollar strengthened against a basket of other currencies. As of 11am EST, the gold price had rebounded somewhat and is currently hovering just below a key support level at $1,199.20 per ounce.
Gold and silver prices have been suppressed for much of the last three years as the Federal Reserve has been delaying an interest rate hike, but some gold market analysts believe this week’s Federal Open Market Committee (FOMC) meeting could alter gold price trends. Highlights from the FOMC meeting were released to the public yesterday and they indicate that Fed chair Janet Yellen and other Federal Reserve governors are likely to vote for an interest rate increase by June of this year.
“They want to delay a rate hike for as long as they can because low interest rates are supposed to boost the U.S. economy,” said Certified Gold Exchange analyst Mark Keegan. “Unfortunately, the benefits Wall Street enjoys because of low interest rates have only had a minimal effect on the economy overall, so the Fed could be forced to raise interest rates despite the fact that the U.S. economy isn’t where it needs to be.”
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