Home / Metal News /  / HSBC: IMF view of US economy may boost Gold
HSBC: IMF view of US economy may boost Gold
Jul 29,2014 13:30CST
industry news
Source:SMM
The International Monetary Fund view of the United States economy may boost gold, should it come true, said HSBC precious-metals analyst Jim Steel.
UNITED STATES July 25 2014 4:35 PM
 
NEW YORK (Scrap Register): The International Monetary Fund view of the United States economy may boost gold, should it come true, said HSBC precious-metals analyst Jim Steel.
 
The IMF on Wednesday suggested the Federal Reserve may have room to keep interest rates at zero for longer than investors anticipate.
 
Currently, the median forecast of participants in the Federal Open Market Committee deliberations indicates that the fed funds rate is expected to lift off from zero by mid-2015, with a gradual path upward toward a 3.75% long-term level, according to the IMF report.
 
However, even with this path for policy rates, the economy is expected to reach full employment slowly and inflation pressures are forecast to remain subdued, according to the IMF report.
 
This could mean that – presuming systemic financial stability risks are contained – there is some scope for policy rates to stay at zero for longer while still keeping inflation under 2%, as per the report.
 
“Gold is historically sensitive to changes in interest rate expectations and the potential for rates to remain at zero for longer would theoretically be positive for prices, in our view, HSBC added.
 
HSBC
gold

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

    Apr 28, 2020 06:09CST
    Apr 26, 2020 22:49CST
    Apr 26, 2020 18:25CST
    Apr 26, 2020 18:16CST
    Apr 26, 2020 16:55CST
    Apr 26, 2020 16:10CST
    Apr 26, 2020 15:28CST
    Apr 26, 2020 15:13CST
    Apr 26, 2020 12:00CST
    Apr 26, 2020 12:00CST