“U.S. numbers are back in focus today, though it matters slightly less after the Fed’s tentative commitment to potentially hold rates at ultra-low levels until mid 2013,” broker VTB Capital said in a FastMarkets report. “By setting a time frame, the Fed could effectively start changing inflation expectations and risk Japan-style stagnation. Either way, gold is well supported in the short-to-medium term, while uncertainty remains over the Eurozone debt crisis and market participants are unlikely to start liquidating substantial longs just yet aside from small scale profit taking.”
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Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own GLD.