Gold Steady Before German, Fed Ruling; Could Rise To $1,769 On Bond Plan

Reuters reported the steady price of gold, up 0.3 percent to $1,736.20, in anticipation of the German court ruling on the Euro zone’s rescue fund and the U.S. Federal Reserve’s bond policy decision.

As quoted in the report:

The Fed is expected to launch another round of quantitative easing (QE3) at a two-day policy meeting starting on Wednesday that would provide a further lift for gold, which has climbed 7 percent over the past month on growing hopes for more stimulus
measures.

Nick Trevethan, senior commodity strategist at ANZ in Singapore commented:

If the Fed announces an open-ended, non-sterilised bond purchase plan, gold could rally past the $1,765-$1,768
resistance level. A disappointing outcome could knock gold down towards $1,700.

Click here to read the full Reuters report.