Gold rises amid talk of central bank intervention in U.S., China

Posted On: April 10, 2012
The prospect of central bank intervention in the globe's two top economic powers pushed up the price of gold on Tuesday, the third-straight day of gains for the yellowish metal, according to Bloomberg.

China reported an unexpected trade surplus from March which is fueling speculation about continued slow growth and development in the nation hosting the globe's second largest economy. U.S. Federal Reserve chair Ben Bernanke said on Monday that the world's largest economy has not yet recovered in full from the Great Recession.

Dow Jones Newswires reports investors, analysts and other market enthusiasts were split as to whether there ought to be another round of quantitative easing.

"It looks like we need bigger and better news to support gold right now," vice president Ole Hansen with Saxo Bank told Reuters. "Traders have been wrong-footed on numerous occasions during the last two months on QE on/off talks."

The record price for gold, $1,923.70 per troy ounce, was established in early September of last year while quantitative easing was deployed in the U.S. to spur the moribund economy, create jobs and lower the unemployment rate.

Category: Industry News

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