Gold Rises Slightly But Awaits Fed Decision

Gold gained in London before the U.S. Federal Reserve’s decision on a possible cut in stimulus. Platinum and palladium also advanced.

Gold tumbled 26 percent this year, heading for its first annual loss since 2000, amid speculation the Fed will start curbing its $85 billion in monthly bond buying. Officials may reduce the purchases “in coming months” as the economy improves, they said at their Oct. 29-30 meeting. While about 34 percent of economists surveyed by Bloomberg on Dec. 6 predicted the Fed will cut purchases this week, 40 percent forecast that tapering will start in March.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza