Gold drops to 4 year low despite Japan QE
Adam Pike, News Editor
31 Oct 2014, 12:52 p.m.
The gold price has fallen to a 4 year low in dollars and a 2014 low in GBP following the Fed's announcement to exit QE3 and better than expected US GDP data. Gold has fallen £33 per ounce this past week.
The gold price extended losses overnight, falling sharply in a surprising reaction to the Bank of Japan's (BOJ) decision to extend their stimulus program. In this unprecedented move the BOJ will intervene directly into the stock market by purchasing shares and property funds. The BOJ will also restructure Japan's government debt and the government pension fund is set to purchase Japanese shares. Unsurprisingly Japanese equities soared on the news.
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