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Gold Market Looks to FOMC Meeting for Directionby Peter A. Grant
Jan 29, AM 
Gold is firmer, boosted by good physical interest in Asia. The yellow metal has been under modest pressure of late, as some optimism about the economic situation in Europe and the U.S. has improved risk appetite, diminishing the appeal of gold as a safe-haven.This is a pretty typical scenario: The price of gold is driven down via paper sales in the West, allowing the physical buyers of the East to buy at a reduced price. Physical demand remains quite strong in Asia, both from individual investors and from the official sector. Today, some of that U.S. optimism was tarnished by a weaker than expected Case-Shiller home price index print for November and a bigger than expected drop in U.S. consumer confidence in December. The conference board was quick to lay the blame on the expiration of the payroll tax cut. People beginning to get smaller paychecks will obviously tend to erode confidence. The market is looking to tomorrow's Fed policy statement as the next directional catalyst, but I don't think there's going to be any significant change in language. The stock market has been underpinned, despite concerns that surfaced after the minutes of the December minutes seemed to reveal some new-found hawkishness on the FOMC. Why mess with a winning formula...if you indeed feel that an additional trillion dollars in planned asset purchases this year is a winning formula. NEWSLETTER SIGN-UP Opinions expressed in commentary on the USAGOLD.com website do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such USAGOLD does not warrant or guarantee the accuracy, timeliness or completeness of the information found here.
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