According to Merrill Lynch’s recent report, Ben Bernanke is aware that a weak national currency supports the country’s competitiveness, and is determined to start another round of quantitative easing.
Merrill Lynch has recently joined the bulls in the market of gold, being sure that gold will test $200/oz in the near future.
The Federal Reserve has already started implementing its plan to purchase t-bonds to the amount of $500 bn, which will eventually result in higher gold prices.
On Friday, gold was traded almost without any changes around $1 569,71/oz. At this point the price has dropped 20% down for the all-time high - $1918/oz – set in September 2011.
Despite the decline, Jim Rogers keeps accumulating long trades in the market of gold, being sure that central banks around the globe will continue their QE plans while investors will turn to gold as a safe haven asset to save their money from inflation.
According to , traders expect that the FRS will get down to QE3 amid the continued eurozone crisis and Chinese economic slowdown.
The experts are almost sure that the Federal Reserve will ease its monetary policy. This may happen this week, when Ben Bernanke is to hold a speech in the US Congress.
experts say gold will most likely keep losing value within a couple of months to touch $1300/oz, especially if the price consolidates below $1530/oz.
