Investors were expecting the Fed to announce a fresh quantitative easing especially after recent U.S employment data showed a fragile market. However Fed Chairman gave no such indication which led to pessimism in the market for Gold causing its price to decline. Silver on the other hand rose by 2.9%.
The euro to dollar fell due to downgrading of Spain as well as signs of economic weakness in Italy and Germany. Euro to dollar is expected to further decrease as concerns rise over worsening EU debt crisis.
Crude oil fell as well, continuing its bearish trend. The worsening of EU debt crisis and weak growth data from both US and China has contributed to this trend. The sanctions on Iran are also to be implemented in the coming weeks which could lead to a short term hike in prices.
