Central Banks Boost the Gold Price

The outlook for Gold Prices, buoyed by central-bank monetary policy…

EXPANSIVE MONETARY POLICIES by central banks worldwide have improved the long-term outlook for commodities, says Commodity Online – led by precious metals such as Gold Bullion, as well as soft commodities.

According to a research report by Credit Suisse, the latest rally in commodity prices was driven by central-bank policies, Chinese strategic buying of key resources, and short-covering by speculative traders. Gold Prices rose in the past few months, mainly driven by safe-haven demand amid the global financial and economic crisis. While this demand supported prices, it also generated risks, some of which materialized – with safe-haven investors taking profits, resulting in a price decline.

The softening of prices gave …