Sterne Agee: Gold Prices To Rise As Interest Rates Remain Low

Since gold is often used as a hedge against inflation, so in the current low inflation environment where everyone is starved for yield it seems like a strange time to start buying gold. But Sterne Agee analysts Michael S. Dudas and Satyadeep Jain argue that the Fed’s zero interest rate policy (ZIRP) and accommodative monetary policies from other central banks will drive gold prices higher. Gold prices track global liquidity and balance sheets – normally “Visible continuity from the Federal Reserve Board regarding an elongated ZIRP, a reversing trend in the value of the dollar and supportive investor interest should…