Watch for the gold spot price - the price of gold for immediate delivery - to make dramatic moves as the Federal Open Market Committee (FOMC) meets this week.
It has already had a volatile morning ahead of the meeting's Tuesday kickoff.
Here’s what the current gold prices did this morning, and the two big policies to watch coming out of the Fed meeting that will move the yellow metal this week….
New Gold Price Chart: Fed Minutes and Middle East Solidify Gold Above $1,320
Gold prices today (Wednesday) finished back over $1,320 an ounce after the release of the latest U.S. Federal Reserve minutes, and amidst turmoil in the Middle East.Take a look at our new gold price chart that reflects the current June-July rally, and get the latest on gold futures, spot gold price per ounce, and news driving up the price of gold...
Gold Prices Waiting to Rally on Central Bank Decisions
Last week it was earnings reports taking center stage, this week it's policy statements from the U.S. Federal Reserve and European Central Bank (ECB).
What comes out of the central banks could have a huge impact on the gold market. Gold prices have been on the rise - 2.5% last week - and could keep going depending on what the central banks deliver.
Gold prices on Monday saw their fourth consecutive day of increases. The August contract rose 0.1% to $1.70 with a $1,619.70 settlement price, thanks to market participants buying on optimism from this week's Fed action.
A two-day meeting begins today (Tuesday) for the Federal Open Market Committee (FOMC). After its conclusion Wednesday, market watchers will be waiting with bated breath on whether a third round of quantitative easing (or QE3 as it is fondly called) will take place.
If that isn't enough, there's Thursday's meeting over in Europe with the ECB. They're also set to make a monetary policy decision.
Let's take a look at these two potential actions that could drive up the price of gold.
To continue reading, please click here... Read More...
Oil and Gold Prices Surge as Speculators Bet Billions Shorting the Dollar
Oil reached a 29-month high (yesterday) Monday morning in London and gold hit an intraday record as investors sought to hedge against inflation and traders bet billions shorting the dollar.
Brent crude futures contracts in London gained 0.1% yesterday to close at $116.11 a barrel, pushed higher by the Middle East crisis disrupting the oil supply. Crude for April delivery was up 0.9% to $105.36 in Monday afternoon trading on the New York Mercantile Exchange (NYMEX).
Fighting in Libya so far has reduced the country's oil output by 1 million barrels per day.