Gold Bugs Hope to Dodge Benanke's Flyswatter
- Wall Street falls with financials, other post-election gainers
- The FTC Confirms Antitrust Charges Against Qualcomm (QCOM) for Monopolizing Semiconductor Device Used in Cell Phones
- United Airlines (UAL) Tops Q4 EPS by 5c
- Obama shortens sentence of Manning, who gave secrets to WikiLeaks
- After-Hours Stock Movers 01/17: (SHLO) Higher; (GIMO) (AFAM) (CSX) Lower (more...)
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Empire Manufacturing (Jan) 6.5 vs 8.5 Expected
- Fed's Williams calls for further gradual U.S. rate hikes
- Oil rises on supply cuts, record China demand forecast
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!