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Gold Remains High after QE3 Announcement

Written By Brian Hicks

Posted September 17, 2012

Predictably enough, gold and silver jumped last Thursday after the U.S. Fed announced another round of quantitative easing. The U.S. dollar index overall was lower and crude oil on the Nymex was over $100.00 per barrel on Friday.

Friday’s data on December gold showed $1,770.00 per ounce (down $2.00), while spot gold was up $.050 at $1,768.25. Silver for December was $34.59 per ounce, or lower by $0.188.

Across the world, Asian and European stocks also showed a positive reaction, and the Euro hit a new four-month high. Friday, EU finance ministers met in Cyprus to discuss the ongoing Eurozone financial crisis and consider bailouts for troubled nations. The IMF, for its part, denied on Thursday that Greece might need yet another bailout.

India, heading into the festive and marriage season, is showing heightened demand for gold, but levels are below those observed last year.

Based on last week’s figures, it is possible that gold might even reach the 2012 high of $1,800.90. Silver’s December futures show a six-month high as well as a six-week-long uptrend. It could break $36.00 per ounce soon.