Gold Bugs Hope to Dodge Benanke's Flyswatter
- All Eyes on Yellen's Jackson Hole Speech
- Pre-Open Stock Movers 8/22: (DYN) (GME) (TFM) Higher; (ARO) (DRL) (AMPE) Lower (more...)
- Dynegy (DYN) to Acquire Duke Energy's (DUK) Midwest Generation Assets in $6.25B Deal
- Murata Electronics to Acquire Peregrine Semi (PSMI) in Net $465M Deal
- Keurig Green Mountain (GMCR) Enters Multi-Year Keurig Licensing Agreement with Kraft Foods (KRFT)
SPDR Gold Trust (NYSE: GLD) is expected to open higher on Tuesday, as spot gold prices rally. The move higher isn't expected to have much more traction short-term, as gold traders await the FOMC rate decision on Wednesday. While rates are not expected to change, comments from the Fed are expected to indicate further quantitative easing, and this has gold bulls sharpening their horns. Easy monetary policy supports gold prices because it adds liquidity and helps stoke inflation. Gold bulls also hope an easy-money policy will undermine the bullish trend in the U.S. dollar. However, if Fed officials fail to deliver on QE in terms of size and scope, it could send gold-bugs scrambling, and gold would likely head back below $1600/oz.
You May Also Be Interested In
- Many Fed Officials Said Job Gains Might Bring Rate Rise Sooner; Labor Market Still Far from Normal
- Russia Calls for Ukraine Cease-Fire While Aid Being Delivered - Bloomberg
- UPDATE: Crude Inventory -4.47M Barrels vs -1.1M Expected
Create E-mail Alert Related CategoriesCommodities, ETFs
Related EntitiesFederal Open Market Committee
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!