Gold Values Jump after Federal Reserve Meeting

Gold prices jumped today after todays Federal Open Market Committee (FOMC) meeting released their economic projection charts. The economic projection charts display actual and projected values for three economic variables based on FOMC participants’ individual assessments of appropriate monetary policy from 2008 to 2016:

1. Change in Real Gross Domestic Product (GDP)—as measured from the fourth quarter of the previous year to the fourth quarter of the year indicated, with values plotted at the end of each year.

2. Unemployment Rate—the average civilian unemployment rate in the fourth quarter of each year, with values plotted at the end of each year.

3. PCE Inflation—as measured by the change in the personal consumption expenditures (PCE) price index from the fourth quarter of the previous year to the fourth quarter of the year indicated, with values plotted at the end of each year.

In a statement issued by the Federal Reserve, Some indicators of labor market conditions have shown further improvement in recent months, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has been strengthening, but mortgage rates have risen further and fiscal policy is restraining economic growth.

Taking into account the extent of federal fiscal retrenchment, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program a year ago as consistent with growing underlying strength in the broader economy.

The Committee will closely monitor incoming information on economic and financial developments in coming months and will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability. Asset purchases are not on a preset course, and the Committee’s decisions about their pace will remain contingent on the Committee’s economic outlook as well as its assessment of the likely efficacy and costs of such purchases.

Gold prices rose from the $1,300 level to $1,345 (+35.50) directly after the meetings announcement.

Screen Shot 2013-09-18 at 11.28.55 AM

If you are looking to add physical gold to your retirement portfolio, contact American Bullion today at 1-800-326-9598 to speak with a precious metals specialists.