Gold has an inverse relationship with the US Dollar so when the dollar declines gold rises. The dollar is affected by monetary policy as decided by the various central bankers across the planet. We recently covered the effect of the European version of QE with an article entitled; ‘Why ECB QE Is Bearish For Gold Prices’ so today we will take a quick look at the ramifications for the precious metals sector emanating from the monetary policy meeting of the Federal Reserve held today.
A brief overview of the Feds actions
The two most important points to come out of today’s meeting were