Sunday, 18 August 2013

Gold inches up after drop, Fed stimulus fears fester

 Gold edged up on Wednesday, after dropping 1 percent the previous session, but a steady dollar and stronger U.S. Treasury yields, coupled with worries the U.S. Federal Reserve may start tapering its monetary stimulus soon capped further upside.
A pullback in the the Fed’s $85 billion monthly bond purchases would support a higher interest rate environment that diminishes gold’s attractiveness.
Uncertainty over the timing of the roll back has already pushed the metal down 21 percent this year, after 12 consecutive years of gains.

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