The Fed will reinvest its profits from its current $600 billion bond buying program back into the market not adding extra cash but not taking any away either. Inflation forecasts were also below the Fed's 2% target, which means the central bank would want more inflation. Some experts are calling this QE 2.5 and say that this leaves the door open to a third round of quantitative easing, or QE3. "You'd almost think Ben Bernanke wants Americans to dump the dollar and switch into precious metals," said Adrian Ash, head of research at BullionVault.com.
Gold mining stocks, a risky but potentially profitable way to buy gold, were trading mixed Friday morning. Kinross Gold ( KGC) gained 0.9% to close at $15.84. Goldcorp ( GG) rose 1.4% to $55.83, while Agnico-Eagle ( AEM) was up 2.9% to $69.56 and Eldorado Gold ( EGO) rose 4.3% to finish at $18.68.
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