Gold prices are climbing again following a wild two weeks leading up to the U.S. presidential election, as traders are now putting their bets on continued easy-money policies that could spur demand for the precious metal.
"The election results bring clarity on monetary policy -- highly accommodative is here to stay," analysts with Barclays said in a note.
Additionally, the package of U.S. tax increases and government spending cuts collectively termed the "fiscal cliff," has also raised concerns about a potential new drag on U.S. growth that could lead to higher demand for alternative assets such as gold.
Many market watchers expect the Federal Reserve's open-ended quantitative-easing program to push investors looking for a hedge against inflation into gold. Easing measures, which effectively increase liquidity in financial markets, can weaken paper currencies. Some investors hold gold in their portfolios in an effort to limit that hit.
"With QE infinity here to stay and the looming U.S. fiscal cliff, gold has an attractive story at the moment," traders with TD Securities said in a note.
"The election results bring clarity on monetary policy -- highly accommodative is here to stay," analysts with Barclays said in a note.
Additionally, the package of U.S. tax increases and government spending cuts collectively termed the "fiscal cliff," has also raised concerns about a potential new drag on U.S. growth that could lead to higher demand for alternative assets such as gold.
Many market watchers expect the Federal Reserve's open-ended quantitative-easing program to push investors looking for a hedge against inflation into gold. Easing measures, which effectively increase liquidity in financial markets, can weaken paper currencies. Some investors hold gold in their portfolios in an effort to limit that hit.
"With QE infinity here to stay and the looming U.S. fiscal cliff, gold has an attractive story at the moment," traders with TD Securities said in a note.
More information can be found online at http://www.goldbullionadvisors.com
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