Current Gold Prices

As of the beginning of August 13, 2009, the best spot gold prices have been hovering around the $950 mark. Most are waiting on the Federal Open Market Committee or FOMC meeting on whether to cut rates. This movement in US monetary policy will have an impact on not just the current gold prices but also the currency exchange and the different stock markets around the world.

The US Federal Reserve uses three different tools to control the financial situation not only in America but the world. The three are the open market operations, the discount rate and the reserve requirements. The FOMC is the branch that controls the open market operations. This committee meets at least 8 times a year.

This latest decision may be changing the overnight interest rate or short term rate that banks loan and borrow money from each other and the Federal Reserve. This is a fixed amount that the rest of the interest rates from the financial world use as a base for their rates.  This will affect consumer loans, mortgages, bonds, and currency exchange rates across America and around the world.

If the interest rate goes up, the US dollar could make yield in the American market higher. This could attract business. If the interest rate is lowered, then the American market could be seen as still weak and less attractive for foreign investment in America.

At this moment there has been no announcement and the gold market, like all the rest of the markets are just waiting. If you make the right move you could make some money, but since no one is sure what is going to happen, the gold market is just jittery. But the best spot gold prices could be just beyond the horizon.