The week opened with a slight rebound for gold, higher after last week’s near-two-week low, around $1,318 per ounce. The week held anticipation for Bank of Japan and Federal Reserve meeting, arguably the two most important events this month for the yellow metal. Tuesday’s trading day was quiet as both meetings began that day; traders were watching to see if the Fed would raise rates and if the Bank of Japan would institute more economic stimulus.
The price of gold rose to the highest in two weeks, above $1,335 per ounce, at the outcome of the Fed’s meeting on Wednesday: interest rates remained unchanged. The Fed also cut their outlook for rate increases next year. The dollar slipped.
Meanwhile, a new United Nations report warned of another phase in the global economic crisis—the third since the crash of 2008 and the Eurozone crisis of 2011. In Japan, all time limits regarding a quantitative easing approach were removed, and goals were set to push inflation above the 2.0% limit. Some profit taking occurred Friday.