Gold Prices Gain Strength After Fed Reserve’s First Meeting!

New York (I-Newswire) May 8, 2011 - Everybody kept their ears glued to the announcement of the US Federal Reserve regarding interest rates. This announcement will eventually dictate if the price of gold will decline soon or if it is expected to skyrocket again. When the news was announced that they will keep interest rates at low levels for now, it added strength to the yellow metal's value.

According to The Gold Standard, “The price of precious metals remained on the upswing. Platinum went up by 0.8 percent and palladium increased by 0.3 percent as well, and the price of gold even increased by $12.30 to $1,517.10 in New York Mercantile Exchange's (NYMEX) Comex division.”

Gold has been trading in high volumes from $1,517.10 and $1,503.30 for every troy ounce. Even silver is enjoying the freeze in interest rates. Its price was declining by 4 percent before the announcement and closed 90 cents more at $45.95 for every troy ounce.

This Federal Reserve meeting was widely awaited by a lot of traders. Their decision was based on their findings that the United State's economic growth rate will slow down this year between 3.1 to 3.3 percent and inflation will go up by 1.3 to 1.6 percent. This discrepancy which is below the 2 percent mandate that they set will lead to possible monetary easing. Any quantitative easing will give a headwind for the American dollar when higher volumes of the money in circulation can weaken its value further. This leads to the boost of gold and silver prices as safer forms of investments.

This higher price for gold is a welcome signal for gold sellers who want to cash in on any scrap gold that they have in their possession. It’s the best time to check on your old jewelry boxes for any broken down gold chains and silver and cash in on them for profit. Try to check on your local neighborhood as well for any gold parties that are sponsored by your friend. Those broken chains can now get a good price from gold buyers based on the current trend.

For more information, contact The Gold Standard, 2201 Merrick Road Merrick, NY 11566, call (516) 324-3004 or visit http://www.nygoldcashers.com/.

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The Gold Standard

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The Gold Standard
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2201 Merrick Road Merrick, NY 11566
NY 11566
11566
Phone : 516-324-3004