Investors Bearish on Gold as Economy Recovers

August 13, 2013 Ryan James In the News

Investors Bearish on Gold

Investors Bearish on Gold

Investors have been continuing the bearish trend with gold as analysts, advisors and investors wonder how the Federal Reserve bank is going to relate to the improving US economy, perhaps decreasing the amount of monthly bond purchases by the Feds.

The trend began this past April when a few investors began to doubt gold’s ability to store value while inflation stalled and there was an historic amount of money printed by the central banks. Federal Reserve presidents in Chicago, Cleveland and Dallas- Charles Evans, Sandra Pianalto and Richard Fisher said that they may be close to shrinking debt-buying as the US labor market makes a comeback. The jobless rate reached its lowest point since November 2007 during the four weeks which ended on August 3.

“We expect the global inflationary environment to remain subdued, so we would not rush into buying gold,” said Jim Russell, a Cincinnati-based senior equity strategist. “Inflation has not played out as anticipated, and we don’t think it’s going to.”

Charles Evans, Federal Reserve Bank, Gold, Richard Fisher, Sandra Pianalto,

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