{"id":42213,"date":"2013-09-20T13:39:42","date_gmt":"2013-09-20T17:39:42","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=42213"},"modified":"2013-09-21T09:01:18","modified_gmt":"2013-09-21T13:01:18","slug":"gold-is-reacting-to-news-about-qe3","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/09\/20\/gold-is-reacting-to-news-about-qe3\/","title":{"rendered":"Gold is Reacting to News About QE3"},"content":{"rendered":"

Article by Investazor.com<\/u><\/a><\/p>\n

As Wednesday Fed decided to maintain the Quantitative Easing Program in place, we could see the American dollar dropping but indices as DAX, Standard & Poor\u2019s 500, Nasdaq and Dow Jones Industrial Average reaching historical highs. This decision was felt and integrated in the price of gold. Since Ben Bernanke announced a possible change of the stimulus program, we saw the price of gold increasing at a steady pace.<\/p>\n

Since the beginning of 2013, gold lost nearly 20% anticipating a reduction in the stimulus program but starting with June, when the possible tapper was announced, gold start climbing, like it encapsulate the uncertainty and lack of trust of the investors, and clearly indicating the continuity of the QE3. Also, Lawrence Summers\u2019s withdrew as a candidate to head the Federal Reserve made the gold climbing as a proof that Janet Yellen has now more chances to assume Ben Bernanke\u2019s responsabilities and to continue the unconventional monetary policy.<\/p>\n

If Fed will cut the stimulus, gold is expected to get on an increasing trend, reaching $1400 per ounce while if the stimulus is maintained, gold will oscillate at lower values, most probably respecting the boundaries of a range. Even if by the end of the year the FOMC will meet again, there are poor chances to see the QE3 tapered. Most probably, the decision will be taken by the new chairman of Fed which will integrate the decision in a new strategy to run the American economy.<\/p>\n

As St. Louis Fed\u2019s Bullard delivered a speech later today, he expressed his view regarding the stimulus program which is effective and benefic for the economy. He doesn\u2019t see any problem in having Yellen as head of Fed. Also, the fact that the QE3 wasn\u2019t tapered at the last meeting isn\u2019t a surprise for him who doesn\u2019t expect this decision to be taken by the end of this year. Even if they would have decided to taper, $10 billion would have made a difference, in his opinion.<\/p>\n

The post Gold is Reacting to News About QE3<\/a> appeared first on investazor.com<\/a>.<\/p>\n

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<\/p>\n","protected":false},"excerpt":{"rendered":"

Article by Investazor.com As Wednesday Fed decided to maintain the Quantitative Easing Program in place, we could see the American dollar dropping but indices as DAX, Standard & Poor\u2019s 500, Nasdaq and Dow Jones Industrial Average reaching historical highs. This decision was felt and integrated in the price of gold. Since Ben Bernanke announced a … <\/p>\n

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