The FED awaits

  • Gold prices fell today after eight continuous days of increase in price. This is attributed to buyers keeping their fingers crossed for the upcoming Fed meeting which will decide whether to have another round of quantitative easing or not. Also Tuesday saw Spain paying a record price to sell its short term debt which showed that the EU debt crisis is worsening and more spread out than just to Greece. Silver also decreased in price today due to these market movements.
  • The Euro increased in strength as compared to the US dollar as there is rising optimism after recent Greek election that Greece can renegotiate terms of bailout.
  • Crude oil increased in price slightly due to expectations of a quantitative easing to be announced after the Wednesday Fed meetings which will increase demand.

 

Author: Jawwad Farid