Loading ...[the difference this time is that it’s not gonna be 3 yrs…but maybe 3 weeks or a month or two to get to 2500]
In 2008, the Goldman analysts noted, the November announcement of quantitative easing was a turning point.
“We are beginning to see a similar pattern emerge as gold prices stabilized over the past week and rallied [Monday] as the Fed introduced new liquidity injection facilities with this morning’s announcement,” they said.
The analysts that said with the Fed easing funding stresses, focus will likely shift to the large size of the Fed balance sheet expansion, increase in developed market fiscal deficits and concerns about the sustainability of the European monetary union.
“We believe this will likely lead to debasement concerns similar to the post [Global Financial Crisis] period,” they said.
In electronic trade on Tuesday, gold futures rose $97 an ounce.