25th January - 2011
With the Fed signaling no major changes in the Federal Reserve monetary policy in the near future, the Gold prices saw a steep fall with Gold ending up with overall year loss up to date counting up to 6.4%. The two-day U.S. Federal Open Market Committee meet 25th - 26th January 2011, where the monetary policy makers are signaling to keep interest rates at low levels drove a selling drive in both spot Gold as well as Gold futures market with investors shying away from Gold as the preferred investment medium.
Though traditionally low interest rates have been a boom to Gold prices a lot of analysts suggests that most of the Low Rates and Current Economic Climate have already been priced into the current market price. That could be true with Gold already touching its lifetime peaks earlier in 2011. After touching a top peak of over $1,400, gold prices may be set to fall to $1,300 levels before support kicks-in with the most recent sharp falls in prices.