Spot gold prices are trading higher Friday, extending their sharp gains from the previous session. Spot gold ended Thursday’s session up $36.25 at $1767.04 with prices surging after the release of the FOMC policy decision. Gold longs were handsomely rewarded after the US Federal Reserve’s decision to launch an aggressive open ended effort to stimulate the flagging US economy by injecting an extra $40bln into the economy each month through purchases of mortgage-backed securities. Unlike previous programmes, the Fed’s third wave of quantitative easing (QE) does not appear to have a defined limit and will continue to operate until the labour market improves. Spot gold prices advanced sharply higher after the FOMC announcement, after previously trading just below $1720/oz where some medium bids had been working throughout yesterday’s session. Prices advanced sharply to around $1772.50 driven by the open ended nature of the Fed’s statement. Gold prices have extended slowly in Asian traded hours, edging higher from lows of $1765.85 to session highs of $1778/oz, currently trading $1775.40.
EasyForexNews Research Team