Economic Events: (GMT)
Analysis and Recommendations:
Gold is trading at 1700.45 soaring through the 1700.00 mark with ease
The Federal Reserve’s interest-rate committee extended its pledge to keep interest rates at exceptionally low levels to late 2014. Within minutes Gold for February delivery skyrocketed $9.90, or 0.6%, to trade at $1,674.40 the Comex division of the New York Mercantile Exchange. Prices had been trading lower, then turned higher before the Fed announcement and then added to those gains after the statement as the U.S. dollar pared gains. The USD followed as expected, plunging as the euro moved back over the 1.30 mark.
Gold is expected to continue rising on EU uncertainty. Chancellor Merkel was the keynote speaker at the World Economic Forum in her address, she stated that there were some problems with the euro and it would take a while to overcome. She more or less conceded that there would be a Greek default and that their austerity programs were failing.
We should see a lot of reactions in Asia and the EU tomorrow.