We use cookies (including third-party cookies such as Google) to remember your site preferences and to help us understand how visitors use our sites so we can improve them. To learn more, please see our privacy policy and our cookie policy.

To agree to our use of cookies, click 'Accept' or choose 'Options' to set your preferences by cookie type.

Options Accept
BullionVault

CHARTS

  • English
  • Deutsch
  • Español
  • Français
  • Italiano
  • Polski
  • 日本語
  • 简体中文
  • 繁體中文
  • Daily audit
  • Help
  • Contact
  • Deposit
  • Login
  • Open account
  • ABOUT US
    • About BullionVault
    • In the press
    • Reviews
    BUY/SELL BULLION
    • Vaulted gold & silver
    • -Live order board
    • -Daily Price
    • Coins for delivery (UK)
    INVESTMENT GUIDE
    • Guide to gold
    • -How to buy gold
    • -Gold investment
    • -Gold investment plan
    • -Investment insurance
    • -Compare asset performance
    • Guide to silver
    • -How to buy silver
    • Guide to platinum
    • -How to buy platinum
    GOLD NEWS
    • Gold news front page
    • -Gold price news
    • -Opinion & analysis
    • -Market fundamentals
    • -Gold/Silver Investor Index
    • -Infographics
    CHARTS
    • Gold price
    • Silver price
    • Platinum price
    • Price alerts
  • Login
  • Open account
  • BUY/SELL BULLION
  • Vaulted gold & silver
    • ⤷
    • Live order board
    • Daily Price
  • Coins for delivery (UK)
  • INVESTMENT GUIDE
  • Guide to gold
    • ⤷
    • How to buy gold
    • Gold investment
    • Gold investment plan
    • Investment insurance
    • Compare asset performance
  • Guide to silver
    • ⤷
    • How to buy silver
  • Guide to platinum
    • ⤷
    • How to buy platinum
  • GOLD NEWS
  • Gold news front page
    • ⤷
    • Gold price news
    • Opinion & analysis
    • Market fundamentals
    • Gold/Silver Investor Index
    • Infographics
  • CHARTS
  • Gold price
  • Silver price
  • Platinum price
  • Price alerts
  • ABOUT US
  • About BullionVault
  • In the press
  • Reviews
  • Help
  • Contact
  • Daily audit
    • English
    • Deutsch
    • Español
    • Français
    • Italiano
    • Polski
    • 日本語
    • 简体中文
    • 繁體中文

Gold News

Live support

NEED HELP? ASK US NOW

Search form

Gold News front page

Gold Price News

Gold Prices Sink as 'Kill or Cure' Stimulus Spikes Real Interest Rates Fastest Since 2013

More...

Gold Investing In Depth

Learn about gold bullion bars

Learn about gold bullion coins (and costs)

Gold investment: Why & how?

Gold Investment Analysis

  • Latest Gold Investor Index
  • Diversification: Gold as investment insurance
  • 40-year Asset Performance Comparison Table

Gold Articles

Opinion & Analysis

Gold Price News

Investment News

Gold in History

Gold Books

Gold Investor Index

Gold Infographics

Archive

  • February 2021 (23)
  • January 2021 (25)
  • December 2020 (24)
  • November 2020 (23)
  • October 2020 (25)
More...

List of authors

Gold Price Erases March's 5% Gain as Fed "Signals Endgame for Easy Money", Dollar Jumps

Thursday, 3/20/2014 14:16
GOLD PRICE gains of 5% in March were erased by Thursday lunchtime in London as all asset prices fell against the US Dollar after the Federal Reserve was seen signaling "the endgame for easy money" as the Financial Times put it.
 
"The Fed meeting certainly injected uncertainty into gold prices," says George Gero at RBC Wealth Management.
 
Trimming another $10 billion from its monthly QE asset purchase program – but still "printing" $55bn in April, greater than the annual economic output of Bulgaria – the Fed also updated its economic projections, trimming the upper end of both its GDP and jobless-rate forecasts.
 
US equity markets fell hard late Wednesday, with world stock markets following on Thursday.
 
The gold price traded as low as $70 beneath Monday's 6-month high of $1392 per ounce.
 
Silver followed and extended the drop in gold bullion prices, losing 7.5% from last week's spike to dip below $20.20.
 
"The gold price remains under pressure amid profit-taking," reckons Germany's Commerzbank, widely reported to be expecting $1400 gold at year-end.
 
But despite "the shift in investor sentiment and gold's bullish breakout since the beginning of the year," counters precious metals analyst Robin Bhar in the latest Commodities Outlook from French investment bank and London bullion market-maker Societe Generale, "we continue to remain bearish about the gold price."
 
Raising SocGen's 2014 average gold price forecast from $1135 to $1180, but cutting his 2015 outlook to $1075 from $1100 per ounce, "The change in US monetary policy will continue to weigh on investor sentiment in the medium term," says Bhar, "as the US Federal Reserve continues to trim its stimulus measures and rate hikes start in mid-2015 amid stronger economic recovery."
 
The Euro currency meantime lost 1.5 cents against the Dollar from before the Fed's announcement.
 
The British Pound sank to 5-week lows beneath $1.65, and China's Yuan fell to a new 11-month.
 
China's Shenzen stock market lost 2.6% to hit last week's 2-month lows.
 
Prices at the Shanghai Gold Exchange fell hard on strong trading volume, but cut their discount to international prices to $5 per ounce from this week's multi-year record of $8.
 
Scrapping its previous 6.5% unemployment rate target for any discussion of raising interest rates, the Federal Reserve yesterday repeated its key promise of "maintain[ing] a highly accommodative stance of monetary policy...for a considerable time" after ending QE.
 
But while only one Fed policymaker now sees 2014 as "appropriate" for starting to hike interest rates – with 13 of the other 15 looking to 2015 – only 6 members of the FOMC now foresee US rates below 1.0% by the end of next, down from 10 members at the December meeting.
 
Ten-year US Treasury bonds fell in price, pushing the annual yield they offer 10 basis points higher to 2.78%, near 2014 highs and the widest spread since 2010 over comparable German, Japanese and other major economy debt, according to Bloomberg.
  • Reddit logo
  • Facebook logo
  • Twitter logo
  • Google logo
  • Yahoo logo
  • LinkedIn logo
  • Digg logo
  • StumbleUpon logo
  • Technorati logo

Adrian Ash is director of research at BullionVault, the physical gold and silver market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn

 

Mobile apps

 - live trading 24/7

 - buy & sell instantly

 - up-to-the-second charts

 

 

 

Daily news email
Go to 'communications settings' 

Get the latest daily gold price news free by email

Latest gold news by email

 

 

 

Gold Investor Index
2 February 2021

Silver Investor Index

Record New Year 2021

 

 

 

LBMA webinar
21 January 2021

LBMA

London gold trading

 

 

 

Bloomberg TV
1 February 2021

Bloomberg TV

r/silver-surge

 

 

 

The Alchemist
1 December 2020

Newton

True Gold/Silver Ratio

 

 

 

  •  Email us

Market Fundamentals

  • Green Energy: Platinum Key to New 'Hydrogen Catapult'
  • 2021 Gold Price to Rise 11.5%: LBMA Forecast
  • 'Cut Bullion Duty to Cut Smuggling': India's Gold Industry
More...
  • Cost calculator
  • Cookies
  • Terms & conditions

©BullionVault Ltd 2005-

  • Twitter
  • Facebook
  • LinkedIn
  • YouTube

Save your cookie preferences

We use cookies to remember your site preferences, record your referrer and improve the performance of our site. For more information, see our cookie policy.

Please select an option below and 'Save' your preferences.

Save

You can update your cookie preferences at any time from the 'Cookies' link in the footer.

Secure auto-logout warning

You have not been active for some time.

For your security you will be logged out in   minutes unless you take action.