Gold fall sharply after the FED meeting due to FED fail to launch QE3, and now



Author: Source: Economic Information Daily 2011-09-30 08:29:20

U.S. Federal Reserve Board (Fed) Chairman Ben Bernanke, 28, the introduction of measures to drive down long-term interest rates after the first public statement. Although there is no explicit reference to the current economic situation or the specific monetary policy, but he hinted that if the U.S. inflation rate or inflation expectations have fallen sharply, the U.S. will need extraordinary measures to further relax monetary policy.

The idea that Bernanke's remarks to imply that the introduction of the third round of the quantitative easing policy (QE3) possibilities. Bernanke has always been in the manufacturing flow, and always hoped that liquidity is maintained.

Do not want deflation

Recently, the U.S. inflation expectations are lower. U.S. inflation expectations by policy makers as a valid indicator of future inflation trends.

Bernanke at the Federal Reserve Bank of Cleveland held a forum to answer questions that the United States is closely watching the current inflation trend. He said: "If the inflation rate had dropped to a low level, we must take action to respond, because we do not want to deflation."

It is reported that the current U.S. core inflation rate of about 1.6%, 2% of the Federal Reserve that is more appropriate level.

21 before the Fed announced a long-term rates down to "distortions operation", that is, before June next year will sell the remaining period of the following three years $ 400 billion in short-term treasury bonds to buy the same amount for a period of 6 years to 30 years long-term bonds.

Some analysts have pointed out that the Fed's move has been very bold, the scale of $ 400 billion more than economists' expectations, but the "twist action" to stimulate economic growth would not be very obvious. At the same time, such a large amount means the Fed once again take similar measures have been very small room, in order to further expand market liquidity, the Fed may have to increase the size of its balance sheet, which is introduced QE3

This post has been edited by hongchai888: Sep 30 2011, 03:12 PM

Of course la everybody expect to see sky rocket or waterfall. But it behave like Silver now, only jump few cents zzz, so girlish

This post has been edited by hongchai888: Sep 30 2011, 05:07 PM

I dont understand why gold price keep increasing as USD also increase.

This post has been edited by hongchai888: Oct 3 2011, 09:20 AM

I can see USD will achieve 3.3 very soon, no eye see

How much you dump and you entry at what price? Mind to share

400gm

So rich

This post has been edited by hongchai888: Oct 3 2011, 01:15 PM

Lai up some more, then I can sell some : )

Yes, but only during office hour.

Maybank - 1 gm

CIMB - 10 gm

UOB - 20 gm

Some China website predict gold will rise up to USD1800 before the next correction coming. Plan to sell all if really hit 1800

lol damn price drop back to the price when I bought, sien

in 167/out 187

All the big movement normally come at the night. Its time to sleep now.

gold price hold SUPERB strong at USD 1600, really need some special news/announcement in order to break it.

And not to forget USD are in the uptrend also.

Indeed. But they are the only one that provide online transaction for GIA

My fren work as finance consultant told me the gold price will fall below 1300 latest by tomorrow, which I dun give a damn by seeing the market now.

LOL eagle eye u bro, I admire u

Its all depends on how Captain America react tonight. Interesting.

This question u hav to ask europe and us dude why they so quite.