Gold prices rise on lower U.S. economic forecasts
Gold futures jumped higher Monday as the dollar fell in value, but concerns that the Federal Reserve may taper off its monetary stimulus may push prices down.
Gold futures for December jumped $22 to $1,344.30 on midday trading Monday, on track for a fourth day of consecutive gains.
Gold has been boosted of late by data showing that U.S. wholesale inventories fell unexpectedly for a second straight month in June, which pushed economists to lower their estimates for second-quarter economic growth.
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The Fed’s economic stimulus strategies of buying bonds, known as quantitative easing, have been a big factor in pushing gold prices to record heights in recent years. The measures keep interest rates low and encourage investors to put their money into non-interest-bearing assets.
The recent forecasts for slower growth has prompted speculation that the Fed may continue its stimulus plans.
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