Gold is trading slightly negative this morning at $1,676 as investors pause ahead of the release of Fed minutes. Loose monetary policy helped gold shoot up to record highs last year, but better than expected economic data in recent months has another round of QE looking less likely.
The Fed minutes will give insights into the Fed’s March meeting and if the Fed is considering any additional steps to help grow the economy. As long as the U.S. economy continues to show signs of improving, the Fed is likely stay on the sidelines. However, many analysts believe if data was to worsen, the Fed would be quick to act in order to keep the recovery on track.
Over the past five days, gold prices have dropped as low as $1,650 and as high as $1,680. [Read more...]