Auguries - December 14, 2012
By The Throat
Kevin Michael Grace
Gold was down (at press time) $2.70 (-0.2%) for the week to $1,697.40, and silver was down $0.48 (-1.5%) to $32.59. GoldCore argued that gold’s decline was curious after “The Fed said that it will maintain ultra-loose monetary policies for the foreseeable future, and the Fed will in effect double the pace of dollar creation.”
“Essentially, the US central bank now IS the market for US government debt,” Ben Mountifield argues at Seeking Alpha December 12. “The US government issues new debt (currently more than $1 trillion a year), and the Federal Reserve buys it, thereby almost entirely bypassing the international bond market. As a result, the Fed can (at least for the time being) keep a lid on interest rates.
Read the rest of this article about gold prices here.