Gold News from Morgan Gold

By James O'Dell

Los Angeles, CA. – Morgan Gold - Gold bullion prices spiked above the $1700 level, within a matter of a few minutes, on Wednesday, and are currently trading at $1,700.50 an ounce, after rising rapidly. Silver is up over 3 percent, at $33.09 an ounce as well, after the Federal Open Market Committee (FOMC), in a 9-to-1 vote, extended until late 2014 an earlier pledge to keep interest rates at 0 to 0.25 percent, its previous target was mid-2013.

The Fed once again described the economy as "expanding moderately" while calling inflation "subdued" rather than "moderated." The Committee said the long-term inflation goal is 2 percent, the most explicit inflation target the Fed has ever set. A clear majority of committee participants (11 out of 17) believe a rate hike would not be appropriate before 2014, according to the ground breaking rate forecasts published Wednesday. The Fed also forecast a growth rate in the GDP of between 2.2 percent and 2.7 percent for 2012, and an unemployment rate ranging between 8.2 percent and 8.5 percent.

Prior to the vote, some analysts were saying that the extension was most likely already priced into precious metals, obviously that was not the case. Could this signal the beginning of the next leg up in the price of Gold?

A report released earlier on Wednesday by Goldman Sachs Group Inc. may have helped to spark the move, as it says Gold bullion provided the best returns of all commodities in the past five years when adjusted for volatility, the report also added that the long-term bull market rally in Gold will continue. While Goldman Sachs is forecasting Gold will reach a new record this year, Morgan Stanley, according to analysts Peter Richardson and Joel Crane, forecasts Gold bullion will climb to a record average of $2,175 an ounce in 2013.

“People are still very under-invested in Gold, and so there is a huge scope of that increasing,” said Jochen Hitzfeld, analyst at UniCredit SpA, and the most accurate forecaster of precious metals prices, tracked by Bloomberg over the past two years. Don't leave your assets unprotected during these times of economic and geopolitical uncertainty, invest in physical Gold and Silver bullion and protect your wealth in 2012.

Widely recognized Gold and Silver bullion coins and bars can be bought and sold quite readily at Morgan Gold and they can be easily stored in a safe-deposit box if needed. Did you know you can add physical Gold to your IRA?  Hear Edmund C. Moy, former director of the U.S. Mint, now representing Morgan Gold, speak on Gold and your retirement. Call 1.800.585.1773 and let our team at Morgan Gold help you diversify your portfolio today. Ask about our new Self Directed IRA. 

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