Monday, September 20, 2010

Gold Anticipates Tuesday Fed Meeting

Gold investors are waiting in anticipation of the Federal Reserve’s Federal Open Market Committee meeting on Tuesday, as any hint there will be quantitative easing will cause the yellow metal to soar.

Citigroup (NYSE:C) has stated if there is a nod in that direction, gold could hit $1,300 this week, let alone by the end of the year, as many analysts and traders have estimated.

The Federal Reserve has a problem, as it probably doesn't want gold to get too big of a push, as it would remind everyone of their failing policies and the over $1 trillion spent which was a complete waste and ineffective.

On the other hand, the Obama administration and the Democrats have a vested interest, as they haven't been able to resist any event which makes them look like they're doing nothing about it.

with elections coming up soon, there could be pressure on the Fed to announce more spending or quantitative easing to make it look like Obama is attacking the continuing weak economy.

Either way, it seems like they will lose, as the majority of Americans are fed up with the out-of-control spending of American politicians and the Obama administration, and so to continue spending in this political environment is political suicide, but that hasn't stopped the majority of Democrats from continue their spending onslaught.

There's really nothing else the Fed can do, or the Obama administration. The question is will they try anyway. If they do, gold will probably skyrocket extremely quickly, if they don't, the liberal base of Obama will more than likely attack him for doing nothing.

Either way, gold will be the benefactor, and even if the term quantitative easing isn't used, or no decision is made, the Fed has already said they're ready to interfere again, so if gold pulls back, it'll only be temporary, as everyone knows they're drunk with spending, and they can't control themselves.

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