Skip to comments.Gold settles at a record high as Fed stands pat on interest rates
Posted on 04/27/2011 1:12:00 PM PDT by SeekAndFind
Gold futures settled at a record Wednesday, getting a boost after the Federal Reserve kept its key interest rate at an historic low range and said rates will likely stay low for an extended period.
The Federal Reserves Federal Open Market Committee on Wednesday left its key interest rate at an historic low range of 0% to 0.25% and said its $600 billion bond-buying program would end as scheduled on June 30. The decisions were widely expected. Read more about the Fed decision.
The continued wording of exceptionally low rates for an extended period says it all, Keith Springer, president of Springer Financial Advisors in Sacramento, Calif., said in emailed comments. They are more worried about recession and deflation, and will keep rates low.
All of this will move gold and silver higher as it will increase inflationary pressures and lower the dollar further, he said.
Gold for June delivery added $13.60, or 0.9%, to end at $1,517.10 an ounce on the Comex division of the New York Mercantile Exchange.
The contract had been trading around $5 higher shortly before the Fed announcement. Shortly after it, prices tapped a high of $1,515.30 an ounce, according to CME Group, which owns Comex.
Gold hit an intraday record of $1,519.20 on Monday, when it also settled at a record.
Prices on Tuesday closed lower for the first time in nine sessions, also snapping a string of high marks.
Earlier, concerns that the Fed may remove mention of keeping rates low for an extended period had put some pressure on gold prices, which had traded as low as $1,503.30 during the session.
(Excerpt) Read more at marketwatch.com ...
From today’s action thus far, it appears that JPMorgan and other manipulators are taking it in the “shorts.”
May they lose their azzes.
Silver up $2.32 to $47.92
That is a wild ride.
The sky is falling the sky os falling. Needed to say taht after the drop the other day and posters came from under their rocks making that claim, guess they won’t be here today after the correction.
Silver looks nice too.
The sky is falling the sky is falling. Needed to say taht after the drop the other day and posters came from under their rocks making that claim, guess they won’t be here today after the correction.
Silver looks nice too.
Buckle up. Given Helicopter Ben’s Dog and Pony Show today, it looks like it’s gonna get a hell of a lot wilder.