Los Angeles – Gold bullion prices reached an all-time record high of $1,397.80 an ounce on Friday while the Silver price gained over 3 percent for the day and 9 percent for the week closing at $26.90 an ounce.
The gold price gained 2.6 percent for the week, bringing gold's year-to-date rise to 27 percent, on track for an incredible tenth consecutive year of gains.
Technical analysts have confirmed that although Gold bullion prices have reached a record all-time high, there is still no evidence for a major top forming.
The bullish long-term view for gold bullion remains intact and periods of corrections should be looked upon as buying opportunities.
Bretton Woods Research recently projected that the gold price could end the year at $1,500 per ounce.
The week began with economic reports showing consumer spending rose less than expected in September and income fell for the first time in over a year.
The Commerce Department said spending rose just 0.2 percent after increasing 0.5 percent in August while analysts had forecast spending, which accounts for about 70 percent of U.S. economic activity, would rise 0.4 percent in September. Harvard economist Marty Feldstein gave his assessment of QE2 in the Financial Times on Wednesday before the Fed's policy statement was released.
"The Federal Reserve's proposed policy of quantitative easing is a dangerous gamble with only a small potential upside benefit and substantial risks of creating asset bubbles that could destabilize the global economy," he said.
The Fed finally unveiled QE2, its newest effort in support of the struggling economy, on Wednesday. The Fed will begin buying about $75 billion a month in long-term government bonds extending through June of 2011 and totaling about $600 billion in government bonds.
The Fed's announcement was more bearish for the dollar than analysts had anticipated as the dollar slumped to a nine month low against the euro a day after the Fed's announcement.
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American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.