The prices gold and silver resumed their upward trend soon after the FOMC announced of QE3 that will consist of purchasing additional agency mortgage-backed securities at a rate of $40 billion per month. This news is likely to continue affecting precious metals rates during the day. Currently the price of gold is rising. In other news U.S PPI rose by 1.7% during last month. U.S jobless claims rose by 15k to reach 382k. These news items may have curbed a bit the rally of bullion but the effect of the FOMC decision eclipsed all other news items. On today's agenda: European Council Meeting, U.S Core Consumer Price Index, U.S. Retail Sales Report and UoM Consumer Sentiment.
On Thursday, Gold hiked by 2.21% to $1,772; Silver also rose by 4.46% to $34.78. During September, gold increased by 5.01%; silver, by 10.61%.
FOMC Announced of QE3
I really thought the Fed will wait with the launch of QE3 until after the elections…but the all FOMC members except one decided its time to take it up a notch and release QE3 with no time limit. The FOMC concluded its meeting with a statement that it will continue its "operation twist until the end of the year, keep rates low until mid 2015 – it was previously until late 2014 – and, as said above, launch QE3 that will consist of purchasing additional agency mortgage-backed securities at a rate of $40 billion per month. This news, as expected, pulled up the prices of precious metals.
On Today's Agenda
U.S Core Consumer Price Index: According to the U.S Bureau of Labor statistics during July, the core CPI edged up by 0.1%(M-o-M) and the index rose over the last 12 months by 2.1%; the CPI remained flat last month;
U.S. Retail Sales Report: in the recent report regarding July, the retail sales rose by 0.8% from the previous month; gasoline stations sales increased by 0.5% in July compared to June;