Fed’s QE3 Spurs Rally of Commodities
Commodities surged today after the Federal Reserve announced the third round of quantitative easing. The Fed said in the statement:
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency
mortgage-backedsecurities at a pace of $40 billion per month.
Additionally, the US central bank promised to keep the monetary policy extremely accommodative through at least mid-2015.
The dollar fell after the announcement, boosting
Gold surged from $1,731.60 to $1,769.10 per ounce, the highest settlement since the huge drop on February 29, as of 22:12 GMT on COMEX today. Silver advanced from $33.13 to $34.62 per ounce. Copper climbed from $3.6935 to $3.7365 per pound today. Oil edged up from $97.08 to $98.05 on NYMEX.
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