ESP Gold Chat Oct 26, 2013
Back to Square One for Gold Price
Gold price had been kept down last few months on anticipation of US Federal Reserve cutting back on its bond buying program (commonly referred to as tapering). But that tapering is now likely delayed for another few months until US economy shows stronger growth trend.
Therefore, as the US Federal Reserve is expected to continue pumping US$80 billion per month of paper money into the market place at least until early next year, we can expect more paper money chasing the same amount of goods and services. This means inflation will set in eventually.
Inflation is bullish for Gold price. As we all know, Gold is a good hedge against inflation.
It is back to square one for Gold and Gold is expected to continue back its upward trend. You can also expect more volatility (fluctuations) in Gold prices as global economies start their recovery path next year.
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Gulam, Emas Sri Pinang Sdn Bhd
Disclaimer: The above comments are personal opinion of Gulam and are not in any way instructions or guidance provided by Emas Sri Pinang Sdn Bhd. Emas Sri Pinang Sdn Bhd will not be held liable for any damages or loss by anyone or any organization as a result of the ESP Gold Chat.