Expectation over Friday’s Jackson Hole Fed speech puts bullion on hold
An awaited speech by Federal Reserve’s chairman Ben Bernanke at a central bankers' symposium in Jackson Hole, Wyoming, tomorrow, has investors expectant. They mainly wonder whether the institution will embark on another asset buying programme, known as quantitative easing.
As a consequence, gold retreated Thursday morning in London, ticking back towards yesterday’s 1-week low at $1653 per ounce as world stock markets also fell.
Analysts quoted by Bloomberg believe the same will happen in the North American markets, due to uncertainty over how far the Fed would go.
Bernanke anticipated at Jackson Hole in 2010 a $600 billion of bond buying by the central bank, causing gold to climb 70% from the end of December 2008 to June 2011.