Gold Jumps as ECB Front-Runs the Fed, Lends Near-Half Trillion Euros at 1.0%
June 24, 2009 by admin · Leave a Comment
THE PRICE OF GOLD leapt overnight and early Wednesday, recovering all and more of this week’s losses at $938 an ounce as world stock markets ticked higher but crude oil slipped for the second day running.
US Treasury bond prices also drifted as the US Dollar Index held flat ahead of today’s interest-rate announcement from the Federal Reserve, widely expected to reaffirm its commitment to Quantitative Easing and 0% interest rates.
The world’s No.1 reserve currency rose however against its main competitor, the Euro, after the European Central Bank pumped a record €442 billion ($618bn) into the region’s banks, offering unlimited loans for 12 months at the current policy rate of just 1%.
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