Gold Rallies After Fed Cuts Rates

Financial Times Via AP:

Gold prices rallied on Tuesday after the US Federal Reserve cut interest rates in an emergency meeting in an effort to prop up the weakening US economy.

Spot gold in London surged to $874.65 a troy ounce as the US dollar weakened against the dollar after the Fed cut interests rates by 75 basis points to 3.5 per cent and warned it was ready to take further action.

Before the central bank action, gold prices had tumbled to a three-week low of $849.50 an ounce as traders took profits from the precious metal's recent rally to cover losses elsewhere. Gold hit in early January an all-time record of $914.0 an ounce.

Read the whole story: Financial Times Via AP

Comments

[Sundialsvc4]

How's that again? "As the US dollar weakened against the dollar?" :-D

Anyhow, by my way of thinking a rise in the price of Gold, as measured in Dollars, is Not A Good Thing because ... if we use Gold as its traditional standard ... it means that the Dollar is worth less. Or maybe, worthless.

Of this much I am certain: fiddling with some prime-interest-rate thingama-knob isn't going to work anymore. The Fed is already basically giving-away money, and I don't see any changes occurring, nor in-the-offing, to any interest rate that --I-- pay as a lil ol' consumer.

If you want to make a significant change to the economy, don't keep fiddling with knobs that just aren't plugged-in anymore. And don't keep acting like the Fed has some bag of magic pixie-dust. That bag has been empty for a LONG time now.

Pay-back time HAS ARRIVED.

[mrcontinental]

Well it looks like my trinkets are still worth something. My TSP is still taking a beating though.