26
June
Gold Gains on Speculation Low Interest Rates Will Spur Demand
26 June 2009 Bloomberg.com
Gold prices rose on speculation that record-low U.S. interest rates will boost demand for the metal as an alternative investment. Silver also advanced.
The Federal Reserve yesterday left its key bank-lending rate target at zero to 0.25 percent and said it is likely to remain at “exceptionally low levels” for an “extended period.” The central bank also reiterated its plan to buy as much as $1.75 trillion in U.S. Treasury securities and bonds as a way to ease credit. Some investors buy gold to preserve value.
“If interest rates remain low, it’s encouraging for gold,” Bernard Sin, the head of currency and metals trading at Swiss refiner MKS Finance SA, said by telephone from Geneva
http://www.bloomberg.com/apps/news?pid=20601012&sid=aHqE_Tt1EaSs
