Fed's "Operation Twist" Could Be Neutral to Negative for Gold Prices
Source: Kitco News, Debbie Carlson (9/21/11)
"'Operation Twist' could be bearish for gold."
At the end of the Federal Open Market Committee meeting Wednesday afternoon, the Fed is expected to announce "Operation Twist," which would extend the duration of maturities on its balance sheet and try to lower long-term interest rates. Tom Pawlicki, analyst at MFGlobal, says this could be bearish for gold. "We don't anticipate that it will offer much impact on gold prices. If anything, it may be negative because the risk of monetization won't increase as the size of the balance sheet remains static," he says. . .View Full Article