Apr 25, 2013 0
Gold prices after an historic crash have rebounded very sharply. Since hitting $1320 per ounce on Monday April, 15th, Gold (NYSEMKT:GLD) has risen as much as $145 and looks ready to climb even higher to end this week.
Gold has risen every year since 2001 but is off more than 10% this year so far. Investors buy the yellow metal as protection against currency and savings buying power erosion. But, the combination of poor economic data and slowing inflation despite the Federal Reserve’s quantitative easing had investors skittish about the Fed ending its monetary stimulus program. That’s the official story. There are reports of failures to deliver allocated gold circulating as well as the announcement that allocated bullion accounts at Dutch banking giant ABN Amro would be settled in cash rather than physical metal which has radically increased the demand for the physical metal around the world
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