“Signal of Ascension?” How Will the Fed’s Monetary Policy Affect the Gold Price?

Kitco editor Neils Christensen commented today on how the price of Gold will be affected, highlighting the Fed’s November meeting minutes.

Neils Christensen’s comments are as follows:

Gold prices continue to hold support above $ 1,800, as the precious metal finds little support from the Federal Reserve.

New Incentives

The minutes of the Central Bank’s monetary policy meeting in November showed that although committee members were concerned about the health of the global economy, they were not ready to implement the new stimulus measures.

While participants decided that immediate adjustments to the pace and composition of asset purchases were not necessary, they agreed that conditions could change to require such adjustments. Accordingly, the participants saw a careful consideration of possible next steps to improve the Committee’s proper guidance for asset purchases.

More Purchases

Overall, respondents found it effective to foster 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 by shifting Treasury purchases to longer term ones without increasing the size of their purchases.

The minutes had little effect on gold prices as the market tried to maintain critical support and attract new buying interest.

December gold futures were last traded at $ 1,806.20 / ounce.

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