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Wednesday, September 22, 2010

Barrick (NYSE:ABX), Goldcrop (NYSE:GG), Newmont (NYSE:NEM) Rebound after Fed Meeting

Gold was weak leading up to the Fed meeting on Tuesday, as everyone was waiting to hear if the Federal Reserve was going to announce another round of quantitative easing.

Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and Newmont Mining (NYSE:NEM) almost at the same time of day were down heavily until the meeting ended and they all shot up to close in positive territory.

While the Fed really did nothing, which was good news, they did again give their promise to stimulate the economy if it needs to be.

That was enough to get gold moving up again, as it broke another record Tuesday, closing at $1,289, after surging $13 to reach $1,291.

Along with the promise to "stimulate" the economy if it needs it, the Fed also said how weak it still was, mirroring what we all knew, even with the ignorant announcement yesterday (not by the Fed) the recession has been over for over a year.

There wasn't enough to necessarily push gold prices up quickly, although we'll see today, but there was enough to confirm it's going to be a long haul for gold prices, and that's good news for gold investors.

The news they were going to continue to keep interest rates low was another major factor, which also plays into gold remaining a hot commodity.

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