The Fed did not disappoint the market and launched the widely-anticipated QE3. Gold futures jumped 1.81% this week after surging 3.13% last week and briefly exceeded $1,770 on Thursday.
Gold is pricing in a Fed QE of as much as $500 billion. Anything less than that figure is seen as having the potential to push gold prices lower late in the week.
Since mid-May, the U.S. Comex gold futures prices have seesawed, climbing up one week, and declining the next. After the initial gold price surge of 4.6%, gold futures have dropped $42 to $1,579.8.
Gold futures rebounded strongly last Thursday and Friday, rising 0.5% for the week after falling 5% the previous two weeks. Gold touched $1,599 Monday morning in Asia though some profit-taking took place.
