The Daily Nugget: Gold Holding Still For Bernanke
The Real Asset Company | Sep 14, 2012 05:44AM ET
Yesterday looked as though it was going to be a pretty good day as the gold price started climbing in the morning after responding to the German constitutional court’s ruling in favour of the European Stability bailout fund.
Gold and silver bullion weren’t the only ones to experience gains during the day thanks to the German lawmakers, European stocks were at a 14-month high.
The spot gold price traded as high as $1,749.50 and went to a daily low of $1,734 an ounce finishing slightly lower at the end of day, silver also did not disappoint with silver prices for December delivery up 15 cents. This morning, both are holding steady ahead of Bernanke’s announcement.
As we said on Tuesday, both gold and silver are likely to be hanging on for today’s announcement from the FOMC and Bernanke, due at 5.30pm BST.
It seems gold has already priced in QE, so it will be interesting how it will react to an announcement from Bernanke. If an open-ended, non-sterilised purchase plan is announced gold is expected to rally to around $1,800 whereas if the announcement disappoints it is expected to fall to $1,700. However, remember what we said posted over on ZeroHedge, was no exception.
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