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Monetary Stimulus Boosts Gold Prices
Gold has been witnessing a depressing few days and bullion investors were looking at other assets to invest in, just to ensure that their finances were evened out before the end of the week. But gold did respond to the Central Bank’s desperate attempt to shore up the economy. After a couple of sessions of losses, Gold registered a gain on the early hours of 21st September, 2012. Bullion investors will now be hoping that it will further reaffirm its position in the coming days as the Central Bank has announced further easing in the near future.
Gold Slowly Recovering As Federal Reserve Announced More Quantitative Easing
Gold investors breathed a sigh of relief when the Federal Reserve announced more quantitative easing to ensure that the rates are kept low. The announcement also assured the bullion investors that this easing will be kept up till the mid part of 2015 to ensure that the market has sufficient time to recover and stabilize. That is the reason why gold is continuing to be around the six and a half month high of $1777.51 per ounce. This low interest environment might be just the medicine the doctor ordered for the bullion market to find its feet in the coming days.
Quantitative Easing Will Keep Gold Buoyed
According to a Shanghai trader, this outlook of long term inflation is a result of the regular rounds of quantitative easing the Federal Reserve and the central banks have provided. He said that gold will remain buoyed as long as the easing will continue and this is what the bullion investors are looking for. He finished off by saying that inflation data from the United States only is not sufficient enough to ensure that Gold will rise and stay there in the coming months. He said that the Euro zone gold price inflation was also important and it will have a significant impact on the long run.
The manufacturing sector in the United States showed that the economy is not still where it should be and this is probably the lowest the figures have gone in the past three years.
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