Gold Price Falls On Federal Reserve Statement
Well, the Federal Reserve will continue printing. Yet somehow, the gold price dropped instantly $10 upon the news.
The Federal Reserve will persist with cheap-money policy in place and pledged to continue pumping $85 billion a month into bond purchases until the economy improves.
Wall Street had expected the Fed to continue QE. The past two months has seen US economic data sour. Many individuals believe we will see QE on into March 2014. Despite the poor economic data, pundits still anticipated a “moderate pace” of economic improvement.
Gold fell instantly on the announcement $15, before recovering marginally. The housing recovery “has slowed,” according to Fed officials. They also warned, once again, that “fiscal policy is restraining economic growth.
Also evident upon the announcement was a slowdown in all markets. European stocks remained flat; the S&P fell a bit. The mainstream press loved talking about the gold price. The dive in gold paralleled an increase in the US Dollar index.If one thing is for sure, the volatility will continue.