Monetary easing has supported the price of gold in recent years, boosting gold investment as a hedge against inflation.
(PRWEB UK) 10 April 2013
Gold made gains on Wednesday morning following Japan’s latest round of quantitative easing – this latest round of Japan’s aggressive monetary easing policy has boosted bullion’s appeal as a hedge against inflation.
Gold gained $2.15 an ounce, taking it to $1,586.84 an ounce. However, investors are now turning their attention to the minutes of the last US Federal Reserve monetary policy meeting for an insight into the stance of the Federal Reserve’s bullion-friendly bond buying programme which is set to be released this evening.
Previous rounds of quantitative easing from key economies such as the US and Japan have boosted gold’s appeal, driving up its price.
A spokesperson from Physical Gold said:
“Monetary easing has supported the price of gold in recent years, boosting gold investment as a hedge against inflation. It will be interesting to see the minutes of the latest Federal Reserve meeting to gage if the US will introduce any more quantitative easing and how this will impact the price of gold.”
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