Gold rose to a third successive record high on Thursday, putting it on track for its strongest weekly performance in six months, as expectations for the Federal Reserve to prop up the economy undermined the dollar.
The Fed is widely expected to resume quantitative easing — in which the central bank would buy government bonds for example and pump extra cash into the financial system to keep interest rates low — which has pushed the dollar down 7 percent against a basket of currencies in the last month.
Gold, which usually benefits from dollar weakness due to its inverse relation with the U.S. currency, has gained nearly 10 percent in the same period.
A 10% gain in a commodity like gold is one of those economic equivalents of a herd of velociraptors parachuting into a day-care filled with tasty three year old kids. Very shortly there will be a colossal amount of blood, screaming, and things getting eaten.
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2 comments:
We can see that Beyond this central bank have wastage money in gold. But The sounds like good for USA . Nice to share such great information.
Uh... what?
I smell bot.
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