Gold Prices will Swing Higher as Fed’s Hands are Tied

Gold prices should appreciate from here. Gold prices have been burdened by the strengthening dollar for the past couple years. The dollar was supported again last week thanks to extraordinary language from the European Central Bank (ECB), but gold hardly budged while oil prices plunged. The reason appeared to be due to expectations about the Fed policy decision this week, or rather its likely indecision. The Fed will probably not raise interest rates this week, given recently soft U.S. economic indications and the strong position of the ECB in the opposite direction. The notable risk to gold buyers here is that the Fed stubbornly acts to raise rates this week, but that possibility has decreased thanks to the latest data. Click through here for the full report on gold prices and the Fed. Article interests SPDR Gold Trust (NYSE: GLD), iShares Silver Trust (NYSE: SLV), Market Vectors Gold Miners (NYSE: GDX), Market Vectors Junior Gold Miners (NYSE: GDXJ), Direxion Daily Gold Miner Bullish (NYSE: NUGT), Direxion Daily Gold Miners Bearish (NYSE: DUST), Goldcorp (NYSE: GG), Newmont Mining (NYSE: NEM), iShares Gold Trust (NYSE: IAU).

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