Gold, Oil & Indices (Equity & Bond Indices)

STILL LOOKING FOR 1270 gold

Gold extends gains the positive combination of possible asset purchases by the Fed and renewed debt concerns in the Eurozone. The increasingly inevitable move into QE2 by the Fed will work to the benefit of gold and silver just as was the case in March 2009 (initial FOMC QE announcement) and in autumn 2009 (extension of asset purchases into end of Q1 2010 from end of Q4 2009). The QE argument for metals could further materialize once markets begin to price in QE2 by the Bank of England. This weeks comments from BoEs newest MPC member Martin Weale about the possibility for a double dip recession in the UK.

Ashraf