Growing speculation that the Federal Reserve will find it necessary to pump more money into the economy sent gold to a record $1,290 an ounce yesterday as the dollar also fell against other major currencies.
“The willingness of the Fed to reinflate is causing a major decline in currency and propelling gold prices to rise, which is weighing on equities. It shows that investors are protecting themselves,” said Peter Cardillo, chief market economist at Avalon Partners in New York.
Source: Reuters