After dropping as low as $1,529 per ounce early yesterday morning, the gold price rallied above $1,550 per ounce as speculation of “QE3” made the rounds across trading desks. With the weak ADP employment data, expectations are that Friday’s jobs report from the Labor Department will miss estimates. QE3 speculation will drives Gold price higher.
With QE2 ending on June 30, speculation is rising that Chairman Bernanke will engage in a new round of asset purchases – or money printing – if the economic data continues to deteriorate.
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