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
- George Clooney And Amal Alamuddin's Wedding In Venice: Photos Of Groom And His Family, Friends [Slideshow]
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- Walking Is Superfood For Fitness; Celebrities Who Walk For Health
- Derek Jeter With The New York Yankees Through The Years [IN PICTURES]
Join the Conversation
- 3 Reasons to Get the Samsung Galaxy Note 4 Instead of the iPhone 6
- iPhone 6 vs Moto G 2014: Motorola’s Budget Smartphone Takes On Apple’s Premium Smartphone
- Google HTC Nexus 9 Tablet October 24 Launch Date Benefits Many
- Galaxy Note 4 vs Nexus 6: Which Smartphone Dominates
- MH 370 Search In Ocean To Intensify With Hi Tech Ships Joining The Plane Hunt From October
- Nexus 7 Tips and Tricks
- Obama’s Bid To Blame Intelligence Chief For Inaction On ISIS Backfires: McCain Asks Obama To Admit Own Mistakes