The yellow metal jumped sharply after the U.S. central bank tied its aggressive stimulus programme directly to economic conditions, marking a significant shift in US monetary policy direction.
by Frank Tang, MineWeb.com
Gold jumped to a six-month high near $1,770 an ounce on Thursday, rising 2 percent after the U.S. Federal Reserve launched an aggressive stimulus program and vowed it will keep buying assets until the outlook for jobs improves substantially.
The metal received a huge boost after the U.S. central bank tied its unconventional bond-buying directly to economic conditions, marking a significant shift in the direction of U.S. monetary policy.
Market watchers said the Fed was essentially shifting its focus to maximum employment at the expense of maintaining stable prices. The two objectives are often called the Fed’s dual mandate.