Gold prices and stock markets have risen, whereas the dollar has plummeted, as markets anticipate more stimulus measures by the United States Federal Reserve. Markets on Wall Street closed strongly, with the Dow Jones ahead by three percent, and the Nasdaq and S&P also rebounding.
It came after markets of Europe closed up 0.7 percent to 1.1 percent, and gold had struck a new record earlier in the day. The chairman of Fed, Ben Bernanke, is broadly anticipated to confer further stimulus measures in a speech on Friday.
This might engage more "quantitative easing" - purchasing up United States debt to insert more cash into the monetary system. The Fed has by now carried out 2 rounds of quantitative easing (QE), to stabilize the 2008-09 monetary crisis, and more freshly to enhance the flagging recovery.
At the beginning of this month, the United States central bank also took the extraordinary step of saying that it anticipated to keep temporary interest rates near to zero until year 2013. On Friday, Mr. Bernanke is going to give an essential speech at the yearly meeting of central bankers at Jackson Hole in Wyoming.
The 2nd round of quantitative easing and the interest rate promise were implied at by Mr. Bernanke when he spoke at the similar event past year. Expectation in the United States of a fresh financial offensive from Mr. Bernanke saw the S&P index close up by 3.4 percent, and the tech-based Nasdaq end ahead by 4.3 percent.