The Federal Reserve announced a 25 basis point increase in the target range for the federal funds rate last week, a step that was widely expected. Though the rate hike was expected, it is indicative of the Fed’s belief in the sustainability of the economic recovery in the U.S., which has important implications for the trajectory of gold prices. Improving economic conditions dampen the investment demand for gold, which is largely considered a safe haven asset from an investment point of view.
from http://ift.tt/1kfcnGl
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