Gold Prices Going Up Regardless of Jackson Hole Outcome
BY DIANE ALTER
AUGUST 28, 2012
Investors want to know if this week’s Jackson Hole, WY meeting of central bankers will result in further stimulus measures and a rally in gold prices – but they don’t have to wait to know gold is headed higher in 2012.
Gold fought back from its Tuesday morning low of $1,659.10 an ounce after a read on consumer confidence showed sentiment dropped in August to its lowest level in nine months. Americans have become increasingly worried about their employment scenarios and the overall outlook on the sluggish U.S. economy.
“Bad news is good news for gold again,” Charles Nedoss of Kingsview Financial told CNBC.
Gold for December deliverylost $5.90, or 0.4%, to end at $1,669.70 an ounce on the Comex division of the New York Mercantile Exchange – but the slip won’t last.
“Before you know it, gold is going to push for the next level, somewhere above $1,700 an ounce,” Michael K. Smith, president of T & K Futures in Florida, told MarketWatch.
Gold glistened last week on news of possible additional monetary intervention from the U.S. Federal Reserve.
Following the release of the Federal Reserve’s minutes last Wednesday, gold prices climbed to a 16-week high on hopes the central bank may engage in a fresh round of monetary stimulus to give life to the besieged U.S. economy.