Fear and doubt interspersed with a lot of arm waving will scatter the weak hands faster than a loud knock at the door at an underage party. This is only reinforced by the fact that today’s sell-off was orchestrated on the same day as Fed’s communiqué revealed that QE2 was needed to avert another economic heart attack. May I ask what fundamental factors will be driving the dollar higher other than a mathematical manifestation of the least offensive pile of manure? Correction or time to buy? Those still seeking an answer have no chance of being in the trend towards the end.
Headline: Gold Prices: Correction or Time to Buy?
Gold prices were hammered as early morning profit taking triggered afternoon sell stops, forcing traders to exit positions to lock in gains.
Bargain hunters were then reluctant to try to catch gold's falling knife, choosing instead to wait for prices to bottom out before buying more.
Gold prices breached but then bounced slightly higher from the 50-day moving average of $1,377 an ounce. Typically gold has moved higher from that area of support. If that level is breached, prices will have to look to the 200-day moving average of $1,265 an ounce.
Source: finance.yahoo.com
Headline: Fed minutes: Economy needs bond-buying program
Federal Reserve officials stuck with the pace of their $600 billion Treasury bond-buying program last month because the economy wasn't improving fast enough to make a noticeable dent in unemployment.
Spending by consumers and businesses had improved heading into the final month of 2010, and Congress was on the verge of enacting a tax-cut package that would bolster the economy, Fed officials said. That made them more confident the economic recovery would gain momentum, according to minutes of the Fed's closed door meeting on Dec. 14.
Source: finance.yahoo.com
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