The Fed's decision to implement a new monetary stimulus program last month put an emphasis on economic targets as stop points. With the expiration of Operation Twist, the Fed determined it would begin an open-ended, monthly purchasing of $45 billion of longer-term Treasury bonds, and said it would continue the program at least until the national unemployment rate dropped to 6.5% or if inflation exceeded 2.5%.
Friday's December unemployment rate reading will be an important economic indicator for gold investors to keep an eye on.
Though the unemployment rate likely won't dip to 6.5% in the near future, a declining trend could give investors a better prediction for the end of quantitative easing. Monetary stimulus is seen as inflationary policy, which is positive for gold.
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