Fed Minutes Hint at QE3 Expansion, Precious Metals Hold Firm
By jturbin | November 15, 2012 6:57 AM EST
The latest Federal Reserve minutes, a recap of last month’s Federal Open Market Committee (FOMC) meeting, noted that many central bankers are in favor of expanding the Fed’s third-round of quantitative easing (QE3).
“Looking ahead, a number of participants indicated that additional asset purchases would likely be appropriate next year after the conclusion of the maturity extension program in order to achieve a substantial improvement in the labor market,” the minutes stated.
The maturity extension program refers to Operation Twist, which is scheduled to end on December 31st, and consists of $45 billion in purchase of longer-term U.S. Treasuries and $45 billion in sales of short-term U.S. Treasuries per month. QE3, meanwhile, is currently comprised of $40 billion in purchases of mortgage-backed securities per month.
The Ben Bernanke-led central bank did not mention the size of any potential QE3 expansion under consideration, however.
(Visit GoldAlert Pro at http://pro.goldalert.com for more analysis on the Federal Reserve and its impact on gold and silver prices)
Following the release of the Fed minutes, gold futures initially climbed to $1,734.10 per ounce but soon after pared their gains on the way back toward $1,730. Silver futures extended their gains as well, to as high as $32.93, but later retreated toward $32.70 per ounce.
The full version of the minutes is available at the Federal Reserve’s website.
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
Join the Conversation
- Global Markets Overview – July 15, 2014
- Honduran Gold Mine Caves in; 8 Rescued, 3 Remain Trapped (PHOTOS)
- Chinese Govt Tightens Control on Gold to Curb Imports, Could Drop 400T from 2013 – Report
- ANZ Seeks Role in Pilot Global Gold Trading Platform in Shanghai
- US California Couple Sells 1,400 Rare Gold Coins Found in Backyard, Now Millionaires
- Transfer News: Ron Vlaar to Consider Villa Exit, May Move to Tottenham
- AS Roma's Seydou Keita Throws Water Bottle at Real Madrid defender Pepe for Spitting [VIDEO]
- The Mentalist Season 7 Spoilers: CBS Skips Simon Baker's Patrick Jane in Fall Schedule, Josie Loren Joins Cast
- Game of Thrones Season 5 Update: Maisie Williams Talks Arya Stark, Lady Stoneheart, and Surprises
- Transfer News: FC Barcelona, Man Utd to Compete for Juan Cuadrado's Signature as Fiorentina Reveal Willingness to Sell