Gold, Oil, and Silver Prices Rise on Expected Fed Stimulus
Gold, oil, and silver prices rose for the 3rd straight day on expectations that the US Federal Reserve will add more funds into the economy to stimulate growth. Oil is the backbone of economic growth, so demand will increase as the economy strengthens. However as you pump more cash into the system, you also create inflation, and gold and silver are the best hedges against inflation as they hold their value.
The EuroZone’s debt crisis seems to be stabilizing too, as Spain is likely to receive support for their failing banking sector.
Gold prices rose 70% since 2008 after the US Fed injected $2.3 trillion into the economy in their two rounds of Quantitative Easing. This third round is expected.
Gold August futures rose 1.1% to close at $1,613.80.
Silver July futures rose 1.2% to close at $28.95.
