Posts Tagged ‘Merrill Lynch’

August 22, 2011

Growing concerns about the global economy and the possibility of a new round of stimulus spending in the U.S. sent gold to a new record high just below $1900 per ounce. As of 10:37 AM Pacific Time, gold was trading at $1,891 per ounce on the New York Spot Market, up $37 per ounce, while silver was trading at $43.59, up $0.59.

JP Morgan Chase recently issued a forecast of $2,500 for gold prices before the end of 2011, saying “Before the downgrade, our view was that gold could average $1,800 per ounce by year end. This view will likely now prove to be too conservative: spot gold could drive to $2,500 per ounce or higher, albeit on very high volatility.”

http://bit.ly/nFu0Cz

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The Federal Reserve may keep interest rates at record lows for the longest period since World War II as the economic slowdown that sparked a four-month bond rally worsens, according to Treasury market signals.

The 3-percentage-point gap between yields for three-month and 10-year Treasuries indicates the economy may grow 1.1 percent in the 12 months ending June 2012, a study by the Fed Bank of Cleveland says. That’s less than half the central bank’s current forecast, and may delay any rate increase from the zero- to-25 basis point range held since December 2008.

Read More:  http://www.bloomberg.com/news/2011-07-11/fed-on-hold-longest-since-1940s.html