3
November
Gold Drops Amid Speculation Fed Bond-Purchase Program to Miss Expectations
3 November 2010 Bloomberg.com
Gold may decline in London on speculation that a second round of quantitative easing by the Federal Reserve may miss investors’ expectations.
The Fed today will likely pledge to buy $500 billion or more in securities, according to 29 of 56 economists surveyed by Bloomberg News. The dollar may strengthen as the Fed announces a smaller increase in asset purchases than many investors expect, Barclays Capital strategist Aroop Chatterjee said yesterday. Barclays forecast purchases of $60 billion a month for six months. Gold usually moves inversely to the greenback.
