Gold Above $1,650 On Stimulus Hopes

Reuters reported that the price of gold jumped above $1,650, the highest price since May, on anticipation that the U.S. Federal Reserve will provide monetary stimulus.

As quoted in the report:

Bullion prices rallied for a sixth straight day, rising above technical resistance of the 150-day and 200-day moving averages. Gold pierced the top end of a near four-month trading range at $1,640 an ounce.

Axel Merk,chief investment officer of Merk Funds, commented:

Given the context of the FOMC minutes in which policymakers are looking to boost growth, whatever tools Bernanke will come up with are likely to be bullish for gold.

Click here to read the full Reuters report.