Gold drops to 3 week low as Fed ends QE
Adam Pike, News Editor
30 Oct 2014, 10:17 a.m.
The gold price has fallen to a three week low after the Federal Reserve announced the end of its latest quantitative easing program. In total the Federal Reserve has expanded its balance sheet by $3.7 trillion since the start of the 2008 economic crisis.
Following the news the gold price fell to a low off $1,203.50 per ounce and the dollar strengthened to a 3 and a half week high against a basket of major currencies. The Fed dismissed deflationary pressures and low growth in the Eurozone as factors that may cause them to miss future growth and employment targets.
The world’s largest gold backed exchange traded fund, The SPDR Gold Trust, which is often used as a barometer of investor sentiment, confirmed its holdings fell yesterday 0.16% to 742.40 metric tonnes, its lowest level in six years.
Gold is currently trading at £753.91 per ounce, silver £10.56 per ounce, platinum £784.17 per ounce and palladium £493.70 per ounce.