Sumary of Gold crawls up as risk appetite eases, yields retreat:
- Article content “Real interest rates are deeply negative, which shows that inflation is running hot, and there’s no chance the U.S. Federal Reserve can make real rates positive short-term, so you have people coming to the realization that you need to own gold,” said Michael Matousek, head trader at U.S. Global Investors.
- Gold also took support from a European Central Bank pledge to keep interest rates at record lows for even longer.
- “Both the U.S. Fed and the ECB are pretty much in sync in delivering a lower interest rate environment for longer and that should be positive for gold over the long-term,” said Edward Moya, senior market analyst at OANDA.