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Gold's price rises as Fed prepares to meet

Release Date: 
Tuesday, December 14, 2010

 The price of gold rose for the second-straight day as the Fed prepares to conduct its final meeting of 2010.

After 5 p.m. in Seoul, the precious metal for immediate delivery was valued at $1,406.82 per troy ounce as the U.S. Federal Reserve considers asset purchases to stimulate the economy. Fed chief Ben Bernanke, in an interview telecast less than 10 days ago, did not rule out action on top of early November’s Fed purchase of $600 billion worth of assets to kick start the economy.

"We expect a low U.S. real-interest-rate environment will continue in 2011, particularly given the resumption of quantitative-easing measures in the U.S.," according to a Monday report from Goldman Sachs Group.

Thus far this year, gold prices have climbed 28 percent and are on track to mark their 10th-straight year of annual gains. It serves as a safety against shaky currencies as countries throughout the world attempt to emerge from a profound recession.

"Investment demand for the metal is definitely there," Wallace Ng, executive director at ABN Amro Bank NV in Hong Kong, told Bloomberg.

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guar­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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