Dovish Fed Prompts Hedge Funds To Buy Gold – Analysts

KitcoNews/Neils Christensen/12-04-17

…“The return of a low inflation narrative, as the minutes revealed many policymakers are concerned that inflation may remain weak for longer than expected, prompted dollar weakness and a flattening of the yield curve,” said Melek. “This saw the opportunity and carry costs of holding the zero-yielding assets reduced, leading to increased interest in the yellow metal.”

Looking ahead, Melek added that he expects to see gold well supported in the near term as hedge funds look for safe-haven investments to protect against escalating geopolitical risks and ongoing drama in Washington D.C

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