The wholesale price of gold halved an early 1.5% rally lunchtime Tuesday in London, dropping back to $1,315 per ounce as world stock markets fell ahead of tomorrow's long-awaited U.S. Federal Reserve decision
Would $10,000 gold be so bad if it came with a sound monetary policy? Besides, where do analysts think the price is going if controls are not put on how many dollars the Fed creates? Many critics see the official US debt rising to $20 trillion by 2016 at the current rate of spending.
After suffering a roughly 4% loss last week, gold prices headed even lower overnight and this morning as further erosion in crude oil and the euro and further advances in the US dollar made life more difficult for the few remaining bulls in the market.
Friday’s US jobs data managed to yield a lift in precious metals values this morning but the advance was itself significantly below expectations and it most certainly did not come at the expense of a notable cratering in the US dollar.