As sentiment among investors and the general market continued to reflect anticipations of continued Federal stimulus action, gold rose once more, with February futures rising 0.5 percent to hit $1,669.40/oz yesterday afternoon on the New York Comex. This comes after the metal rose 0.7 percent last week.
The latest on the issue is a statement from Charles Evans, President of the Federal Reserve Bank of Chicago, to the effect that U.S. policy ought to remain supportive of the economy.
Bloomberg reports:
“Today’s comment is definitely supportive,” Scott Gardner, the chief investment officer at Verdmont Capital SA in Panama City, said in a telephone interview. “The Fed’s statement earlier this month took a lot of sheen out of gold.”
At the start of the year, Federal minutes entertained the possibility that the $85 billion-per-month stimulus might end with the year. On that occasion, gold dropped sharply to its lowest in four months.
But for now at least, it seems Federal stimulus action is to continue.
