Gold Is on Sale -- Is it Worth Buying Now?
NEW YORK ( TheStreet) -- Gold prices remain under pressure Friday as technical selling and a lack of clarity regarding the Fed's stance on continuing its bond-buying operations weigh on market sentiment.
Minutes from the central bank's FOMC January meeting were released Wednesday and indicated that some members were growing uncomfortable with the risks associated with ongoing asset purchases. That led to speculation that the Fed may end its bond-buying program sooner than anticipated.
That, in turn, has pressured gold prices, because not only could this potentially reduce gold's appeal as an inflationary hedge, but the comments also spurred buying in the dollar, which continues to move higher. With ongoing tensions in the eurozone regarding upcoming elections in Italy, and the prospects of a correction in risk assets, the dollar has even more reasons to stay strong.
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