The US Federal Reserve System (FRS) has started purchasing mortgage securities to stimulate economy. Securities worth $40 billion will be purchased annually. $23 billion will be spent before the end of September.
The dollar rate at MICEX-RTS dropped by 0.50 rubles to 30.76 rubles per dollar. The euro rate dropped by 0.31 rubles to 40.08 rubles. The bi-currency basket (0.55 dollars and 0.45 euro) dropped by 0.41 rubles to 34.96 rubles.
The euro rate at Forex totaled $1.3039 at 10.08 am, compared with $1.2985 at the previous trade. The rate increased to $1.3024 at noon.
Chairman of the FRS Ben Bernanke said that the main goal was to stimulate long-term employment. The basic rate of loan and monetary policy will remain at 0-0.25% annually until mid-2015.
The FRS approved Operation Twist extension worth $667 billion until the end of the year. Monthly expenses for purchases of securities will total $85 billion.
Prices for October futures of WTI (Light Sweet Crude Oil) increased by $0.88 (0.9%) to $99.19 per barrel at 9.40 am. October futures of Brent increased in price by $0.77 (0.66%) to $116.65 per barrel.
December futures for gold at Comex increased in price by 2.2% to $1772.1 per troy ounce.
Li Ning, an analyst of Shanghai CIFCO Futures, says that the measures may increase inflation. Prices for gold may total $1800 or $1900 per troy ounce.
Futures for silver increased in price by 4.5% to $34.78 per troy ounce, October futures for platinum by 1.8% to $1679.5 per troy ounce due to protests at South African mines.
Gold prices in 2011 increased by about 10%. It has been the longest period (11 years) of growing gold prices since 1920. Gold prices dropped by 4% in Q2 2012. They increased by about 5% in August.
