27
January
Gold May Advance as Federal Reserve Maintains Economic Stimulus
27 January 2011 Bloomberg.com
Gold declined in London as strengthening equities and higher prices for some commodities helped erode demand for the metal as a protection of wealth.
“As long as the Fed keeps its loose monetary policy, it will be positive for gold,” Yingxi Yu, an analyst at Barclays Capital in Singapore, said by phone. “The Fed statement reflects uncertainty in the economic outlook, which has supported gold in the past couple of years. We view the price decline as a short-term correction.”
