Everything You Need To Know To Sell Gold Online

Gold Buyers Still Watching The Fed

by Michael Locklear

August 29, 2012 – Tuesday’s report on continued weakness in US consumer confidence increased hopes among investors for new monetary easing from the Federal Reserve. Some fear there may be a sell-off if the Fed’s position on new quantitative easing does not change.

As the dollar weakens the price of bullion edged up slightly. As the dollar continues to drop gold investors continue to increase their hopes that the Fed will announce a new round of money printing at its symposium in Jackson Hole, Wyoming. Fed Chairman Ben Bernanke will deliver a speech to central bankers and finance ministers on Friday.

Gold bulls may rapidly reverse their bullish position on the gold market if a new round of bond buying by the US government is not announced by Bernanke. James Steel HSBC analyst said “gold prices could correct, possibly abruptly and steeply, should Bernanke’s speech again hint of distancing the Fed from further monetary policy easing.”

Consumer confidence fell further in August in light of serious doubts on behalf of the American consumer in the US job market. Faith in any improvement in the unemployment figures dropped to its lowest levels in nine months according to the August report.

Fed policymaker’s acknowledgment that the US recovery still remains shaky and may require efforts to continue to maintain low interest rates with additional easing has pushed up gold as a viable hedge against inflation. This is further fueled by sketchy US economic data.

Not all Fed board members support the idea of any form of monetary easing at this time. The Dallas Fed Pres. Richard Fisher has made very clear that he is not in support of any further easing. The market continues to remain hopeful as the Fed continues to consider its options as it attempts to reach agreement on its further actions towards monetary easing.

In recent weeks a lack of clarity in the short-term economic future has not prevented gold market investors from slowly increasing their move toward more gold holdings. Recent deadly violence in the south African mining industry has everyone on edge and has gold investors nervous about its effects on gold supply.

Traders and investors are anxiously awaiting announcements from upcoming crucial meetings of both the US and European central banks. Gold for December delivery traded down on Tuesday to settle at $1669.20 an ounce. The last quote on Spot gold was down $10 per ounce settling at $1656.

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