Chart courtesy of Kitco.com

The Federal Reserve has sprung a surprise on the markets by announcing its intention to buy $300 billion in longer-term Treasuries in order to assist the economic recovery.

We were watching gold prices decline throughout the trading day in New York when ‘pop’ they suddenly took off in a vertical ascent. We tracked around the air waves and found that the BBC World Service had a mention in their business broadcast about the Fed making the above purchase, then we found this article on Market Watch (read more…)