The price of gold may have come under increasing pressure in past weeks with concerns that the Federal Reserve's loose monetary policy may be coming to an end, but analysts have told forexsq that the precious metal can still break through the $2,000 mark in the long term.
"We're in a very good situation. QE (quantitative easing) is going to go for six to twelve months. They are talking about $500 billion to $1 trillion more in the system," Eugen Weinberg, head of commodity research at Commerzbank told CNBC Monday.
Record low interest rates by central banks around the globe have resulted in negative real interest rates â€” when allowing for inflation. Traditionally gold has an inverse relationship to interest rates and is used as a hedge against inflation, which can occur as a result of monetary stimulus.
- 1Dollar turns broadly higher after jobs report
- 1U.S Dollar Rises to 6-Week High Versus Yen as Jobs Gain Backs Taper | Top Forex Brokers
- 1U.S. Stock-Index Futures Rise After Payrolls Report
- 1U.S. economy adds 175,000 jobs in February
- 1U.S. job growth accelerates, weather cuts into hours worked
- 1Payrolls in U.S. Rise More Than Forecast; Jobless Rate Climbs | Top Forex Brokers
- 2Stocks Extend Six-Year High as Yen Weakens; Bunds Decline
- 2ECB holds rates, looks at back door measure to loosen policy | Top Forex Brokers
- 2U.S. jobless claims tumble to three-month low
- 2Jobless Claims in U.S. Fall to Lowest Level in Three Months
Become Our Fan
apple asia stocks asian stocks australian dollar bernanke boj china dollar ecb economy economy news eur eur/usd euro euro zone europe stocks european central bank european stocks eurozone eurusd facebook fed federal reserve forex forex news forex trading fx gbp/usd gold greece imf japan nfp obama oil pound spain stock stocks swiss franc u.s dollar u.s. dollar u.s. economy u.s. stock u.s. stock futures u.s. stocks us dollar usd wall street yen