Fed’s QE Plan Buoys Gold

احدث اجدد واروع واجمل واشيك Fed’s QE Plan Buoys Gold



Gold bullion reclaimed the $1,400 per ounce level Wednesday amid news that Ben Bernanke and the Federal Reserve will begin the second round of quantitative easing with $105 billion of U.S. Treasury purchases over the next month. The yellow metal had fallen to as low as $1,383 in overnight trading, but bounced back as the U.S. Dollar Index pared its gains, but still managed to close higher by 0.3% at 77.66.

The Fed will conduct 18 open market operations between November 12 and December 9, which will serve as the first portion of the $600 billion QE2 plan announced last week. In addition, the central bank will reinvest between $250 and $300 billion of proceeds from mortgage-backed securities and agency debt into U.S. Treasuries.

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