With the news yesterday that the Federal Reserve intends to keep a watchful eye on the U.S. economy with a view to providing additional accommodation only as and when needed, gold bulls had been disappointed that there was no outright and near term commitment – at the very least they were hopeful that Operation Twist might be extended. Gold prices had initially fallen in response, a knee jerk reaction if ever there was one, but have since recovered, thanks in part to the strong equities rally, and gold is now trading higher at $1650.96. Read more
