Will The Federal Reserve Cut Affect Gold Prices?

Today the Federal Reserve cut the federal-funds rate by 3/4 of a percentage point. The policy makers there said that because they feel the outlook for the economy continues to appear weak, this needed to be done. In addition, the Feds pointed to the downside risks to growth factor.

Globally, stock-markets have been selling-off all based on the now world credit crunch first felt strongly in the U.S. Here in America, stock futures quickly reclaimed some early losses - but remain extremely volatile.

And these moves affect gold prices causing more people to consider the precious metal to flee from volatility. We predict prices to rise sharply on this news on all markets.