Thursday, April 28, 2011

No Rate Hike Until July 2012

Barclays Capital looks does not look for the Federal Reserve to hike interest rates until the summer of 2012 and says the loose monetary policy in the meantime should remain supportive for gold. Prices rose after a Wednesday FOMC statement that said rates will remain low for an “extended time,” with gold hitting a fresh record overnight and silver also up sharply. “Our economists do not expect an increase in the federal funds rate until July 2012, which bodes well for gold set against a backdrop of ongoing geopolitical uncertainty, sovereign debt concerns and a weaker dollar,” Barclays says.

via Kitco

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