Gold Gets Central Bank Boost

Globally, central banks are aggressively pursuing inflationary monetary policies while weakening their currency to promote more economic growth, and one European fund manager sees or said he sees this as the perfect environment for gold.

“With central banks all over the globe, especially in Europe, being eager to fight deflation and to do whatever it takes to create inflation, I think, gold is in a sweet spot,” said Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the In Gold We Trust report.

Gold prices took a hit on Thursday as markets interpreted the latest Federal Reserve monetary policy statement as hawkish, but Stoeferle said that it is only a matter of time before the U.S. central bank joins the rest of the world and loosens monetary policies further.

via Kitco

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