Gold Prices Down Today: Gold prices were lower in early trading today (Friday) as traders remain guarded ahead of next week's Federal Reserve meeting.
The spot price of gold hit a low of $1,097.90 in early trading.
By Diane Alter, Contributing Writer, Money Morning -
Gold Prices Down Today: Gold prices were lower in early trading today (Friday) as traders remain guarded ahead of next week's Federal Reserve meeting.
The spot price of gold hit a low of $1,097.90 in early trading.
By Diane Alter, Contributing Writer, Money Morning -
Gold Prices Down Today: Gold prices were lower in early trading today (Friday) as traders remain guarded ahead of next week's Federal Reserve meeting.
The spot price of gold hit a low of $1,097.90 in early trading.
Here's what is pushing gold prices lower this month...
By Peter Krauth, Resource Specialist, Money Morning -
Gold and to a lesser extent silver got hammered pretty hard today (Friday) - leading many of our investors to write in and ask why gold prices are down so much this week.
Gold closed Friday at its lowest level since July 2011. In the last two days, gold was off about $70 and silver off about $1.60 at their worst points.
So what's going on?
Well, in the search for answers I can see a few reasons.
It started Tuesday, when UBS cut its average gold price forecast for 2013 to $1,740 from $1,900. UBS cited risks the U.S. Federal Reserve would end its current QE sooner than expected, a move into equities, low inflation, improving economic growth, and a stronger U.S. dollar.
Then Wednesday, the leaked Federal Open Market Committee (FOMC) meeting minutes showed that several members believe the costs of the $85 billion monthly bond purchases outweigh the benefits. We're being led to believe that "many participants" think improving unemployment could justify slowing up on bond-buying "at some point over the next several meetings."
Remember that these are not minutes where members' comments are actually written down word-for-word (like they ought to), these are carefully crafted statements to influence opinion. The Fed is known to try to "manage expectations, so it wants it to look like bond-buying will end sooner than later.
But I, for one, don't buy it.
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By Diane Alter, Contributing Writer, Money Morning -
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