{"id":38817,"date":"2012-12-13T03:51:00","date_gmt":"2012-12-13T03:51:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-gain-on-feds-continued-economic-stimulating-policies\/38817\/"},"modified":"2012-12-13T03:51:00","modified_gmt":"2012-12-13T03:51:00","slug":"gold-prices-gain-on-feds-continued-economic-stimulating-policies","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-prices-gain-on-feds-continued-economic-stimulating-policies\/38817\/","title":{"rendered":"Gold Prices Gain on Fed\u2019s Continued Economic Stimulating Policies"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold-price.aspx\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> edged up on Wednesday after the <a href=\"http:\/\/www.knowfinance.com\/federal-reserve-system-fed\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a> announced new set of economic stimulating measures, boosting metal\u2019s inflation-hedge appeal while weaker dollar also lifted the demand of the yellow metal.<\/p>\n<p><span id=\"more-38817\"><\/span><\/p>\n<p>Gold futures for February delivery gained $8.39 an ounce or 0.5 percent to settle at $ 1,717.90 an ounce while spot gold added 0.2 percent to trade at $ 1,713.69 an ounce.<\/p>\n<p>The SPDR Gold Trust (ETF) (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=GLD\" target=\"_blank\" rel=\"noopener\">NYSE: GLD<\/a>) ended the day 0.08% higher at $165.79.<\/p>\n<p>The <a href=\"http:\/\/www.knowfinance.com\/federal-reserve-system-fed\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a>, which announced its latest policy statement on Wednesday, looked in no mood to scale down the enormity of quantitative easing as long as the labor market showed drastic improvement. The central bank said that it will keep benchmark interest rates at record zero level until the unemployment level falls down to 6.5 percent.<\/p>\n<p>The Fed also said, so long the rate of inflation remained under control (under 2.5 percent) one or two years ahead or inflation outlook remained under control, it won\u2019t take a turn in its quantitative easing program.<\/p>\n<p>Besides, as expected, the bank announced $45 billion monthly bond purchase program. Already, Fed\u2019s monthly $40 billion mortgage-backed assets buying program is on since September.<\/p>\n<p>According to metal analysts, the unprecedented steps adopted by the Federal Reserve will prove very bullish for gold in the mid to long run. As seen by policy statement, the Fed is likely to print excessive currency in order to provide impetus to the U.S. economy\u2014which in turn will boost gold\u2019s inflation-hedge appeal as rampant cash printing will result in currency debasement.<\/p>\n<p>Meanwhile, economists, according to Reuters are of the views that Fed\u2019s new target of bringing down the rate of unemployment to 6.5 percent will take some time. Just last week, a data provided by the U.S. Labor Department showed that unemployment rate eased marginally to 7.7 percent in November, from 7.9 in October&#8212; and the drop in unemployment rate came\u00a0 only after unexpectedly strong gains in non-farm payroll in Nov. even as many Americans moved out of the job market or completely gave hopes for\u00a0 finding a new job.<\/p>\n<p>&#8220;That&#8217;s a bullish for gold for the Fed to say it will keep interest rates low until unemployment rate drops to 6.5 percent &#8211; it doesn&#8217;t look that&#8217;s going to happen anytime soon,&#8221; commented Bill O&#8217;Neill, partner of commodities investment firm LOGIC Advisors in a note to investors.<\/p>\n<p>Support also came from weaker dollar. The dollar edged lower on Wednesday against major traded currencies after the Federal Reserve reaffirmed its commitment to continue with its ultra loose monetary policy.<\/p>\n<p>Typically, a weaker dollar tends to push the demand for dollar-dominated commodities, as holders of other currencies find cheaper to buy.<\/p>\n<p>The ICE Dollar Index, a measure on U.S. unit\u2019s performance against a basket of six major traded currencies, edged lower to 79.791 on Wednesday, from 80.061 in late North American trade on Tuesday.<\/p>\n<p>\u201c [The continuing economic stimulating measures from the Fed] will further weaken the U.S. dollar and support gold well into 2013, with volatile trading patterns along with profit-taking periods as well,\u201d wrote Jeffrey Wright, managing director at Global Hunter Securities in a note to bullion\u00a0 investors.<\/p>\n<p>However, Wright also added that prices will not rally in the near term; rather it will gradually advance, probably peaking at $1,850 an ounce, in the second half of 2013.<\/p>\n<p>Moving to some other precious metal markets, <a href=\"https:\/\/stockmarketwatch.com\/metal\/silver-price.aspx\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">silver<\/a> prices climbed 1.7 percent to end the day at $33.51 an ounce.<\/p>\n<p>In platinum group metals, spot platinum inched up 0.1 percent to close at $1,634.74 an ounce while spot palladium edged up 0.9 percent to close at $ 695.47 an ounce.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div class=\"nr_clear\"><\/div>\n<div id=\"nrelate_popular_2\" class=\"nrelate nrelate_popular nrelate_default nr_1col nr_text\"><\/div>\n<p>\t<!--[if IE 6]>\n\t\t<script type=\"text\/javascript\">jQuery('.nrelate_default').removeClass('nrelate_default');<\/script>\n\t<![endif]--><\/p>\n<p>\t<script type=\"text\/javascript\">\n\t\/* <![CDATA[ *\/\n\t\tnRelate.domain = \"www2.thestockmarketwatch.com%2Fstock-market-news\";\n\t\tvar entity_decoded_nr_mp_url = jQuery('<span\/>').html(\"https:\/\/web.archive.org\/web\/20121214092254\/http:\/\/api.nrelate.com\/mpw_wp\/0.51.2\/?tag=nrelate_popular&domain=www2.thestockmarketwatch.com%2Fstock-market-news&url=http%3A%2F%2Fwww2.thestockmarketwatch.com%2Fstock-market-news%2Fgold-prices-gain-on-feds-continued-economic-stimulating-policies%2F38817&nr_div_number=2&maxageposts=7200&increment=1\").text();\n\t\tnRelate.getNrelatePosts(entity_decoded_nr_mp_url);\n\t\/* ]]&gt; *\/\n\t<\/script>\n\n\n<div class=\"nr_clear\"><\/div>\n\n\n\n\n<!-- AddThis Button BEGIN -->\n\n\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a>\n<a class=\"addthis_button_preferred_2\"><\/a>\n<a class=\"addthis_button_preferred_3\"><\/a>\n<a class=\"addthis_button_preferred_4\"><\/a>\n<a class=\"addthis_button_compact\"><\/a>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n\n\n<script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script>\n<!-- AddThis Button END -->\n\n\n\n\n<p>More Posts by this author<\/p>\n\n\n\n<ul>\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/adobe-reports-q4-results-adbe\/38895\">\nAdobe Reports Q4 Results (ADBE)<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-slump-impasse-in-washington-feds-new-policy-statement-weighing-on-sentiment\/38894\">\nGold Prices Slump, Impasse in Washington, Fed\u2019s New Policy Statement Weighing on Sentiment<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/market-update-after-hours-december-13\/38892\">\nMarket Update After Hours December 13<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-fall-sharply-on-fiscal-cliff-worries\/38873\">\nStocks Fall Sharply on Fiscal Cliff Worries<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-fall-sharply-silver-prices-also-tumble-5\/38872\">\nGold Prices Fall Sharply; Silver Prices also Tumble<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-headed-for-a-lower-finish-49\/38871\">\nStocks Headed for a Lower Finish<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/southcross-energy-partners-sxe-q3-results-and-2013-guidance\/38862\">\nSouthcross Energy Partners &#8211; SXE &#8211; Q3 Results and 2013 Guidance<\/a><\/li>\n\n\n\n<\/ul>\n\n\n\n\n\n\n<hr>\n\n\n\n\n\n<table style=\"border:none;margin:0;\">\n\n\n<tr>\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/web.archive.org\/web\/20121214092254im_\/http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/userphoto\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n\n\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n\n\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n\n\n\n\n<div style=\"font-size:10pt;\">\n\nEd Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/div>\n\n\n<\/td>\n\n<\/tr>\n\n<\/table>\n\n\n\n\n\n\n<script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script>\n\n\t\t\t\t\t\t\n\n\t\n\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices edged up on Wednesday after the Federal Reserve announced new set of economic stimulating measures, boosting metal\u2019s inflation-hedge [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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