Gold is trading flat today and is up only $4 at $1,647.50/oz. Gold prices have taken a hit in recent days as investors’ optimism has grown as the outlook for the U.S. economy looks better. The recent jump in the dollar had also negatively affected gold.

Stocks are up some in midday trading a few days after the Dow saw a more than 200 point jump. Investors seemed to have little reaction to positive weekly jobless claims that came out earlier today. Jobless claims fell to a four year low with 351,000 initial claims for state unemployment benefits.

Gold investors have been waiting for the Fed to confirm another round of quantitative easing. But the Fed has given no indication that another round is coming or even needed. Until another round of QE or a significant downturn in the market, gold will likely continue to trade in its current range. [Read more...]

Gold price bulls have not had a good couple of days. The metal was hammered after the release of the Fed statement the other day. With the prospect of QE3 dim in the near future, gold prices were sent plumbing the depths to an 8-week low.

The dollar strengthened on the news, as the Fed indicated the economy is growing a moderate pace. Platinum has also surpassed gold in price for the first time a in a good while. Silver was also not spared the bloodbath, down over 4% on the day.

Analysts who have parsed the Fed statement, say there are increasing signs of an optimistic tone. Gold bulls have pegged the continued rally on the resumption of some form of QE 3. Could be the metal is in for a correction until the point comes when the central banks have to unwind the stimulus they have used to prop up both the financial sector and the markets. [Read more...]