Gold Posts Biggest Advance in Three Months as Fed Drives Whipsaw
Traders are getting whipsawed with a sputtering American economy driving expectations that the Fed will wait longer before raising rates. That view has bond traders worried about inflation again and means that the dollar is losing some of its luster. Lower rates help to boost the appeal of gold, which generally offers returns only when prices rise. The metal is also a traditional hedge against higher consumer costs and an alternative to the U.S. currency.
