“Bullish signal?” How Will The Fed’s Monetary Policy Affect The Gold Price?
Coinputin.com – Kitco editor Neils Christensen comments today on how the gold price will be affected, highlighting the minutes of the Fed’s November meeting.
Neils Christensen’s comments include:
Gold prices continue to hold support above $ 1,800 as the precious metal finds little support from the Federal Reserve.
Minutes of the central bank’s November monetary policy meeting showed that while committee members were concerned about the health of the global economy, they were not ready to implement the new stimulus measures.
Participants agreed that while immediate adjustments to the speed and composition of asset purchases were not necessary, conditions could change to require such adjustments. Accordingly, participants saw a careful consideration of possible next steps to improve the committee’s guidance as appropriate for asset purchases.
Participants generally believe that it is effective to encourage financial conditions that support the current pace and composition.
Participants noted that the committee could provide more housing, if appropriate, by increasing the pace of purchases or shifting Treasury purchases to longer-term ones without increasing the size of their purchases.
The minutes had little impact on gold prices as the market tried to maintain critical support and attract new buying interest.
Gold futures for December were last trading at $ 1,806.20 / ounce.