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Wednesday, December 19th, 2018 - Buy Gold - Bringing you trusted gold news and gold investing information since 2006

Faber says “Don’t trust central banks”

“I keep on accumulating gold,” says renowned investor Marc Faber, publisher of the Gloom, Boom & Doom report.

Gold almost returned to where it started off this week, with the US dollar gold price falling 1.3 percent on Thursday compared to the previous session, hitting $1538 per ounce. Silver prices also fell back below the $36 per ounce mark, slightly below its starting off price at the beginning of the week.

This came as US Federal Reserve chairman Ben Bernanke made no special reference to the QE3 – a third round of quantitative easing – while holding a press conference on Wednesday.

Marc Ground, commodity strategist at Standard Bank, said: “We reiterate that our consistent bullish view on gold is not reliant on QE3… The current environment of increased government borrowing…is sufficient to push global liquidity, a major causal driver of gold, higher.”

He added that gold prices are likely to maintain their upward momentum in the longer-term.

“That the Fed and Bernanke didn’t really allude to any future QE3…probably prevented gold from pushing higher and heading towards its record,” Darren Heathcote, head of trading at Investec in Sydney, said after the press conference.

Ole Hansen, senior manager at Saxo Bank, noted that gold has had a difficult time performing over recent days, adding that summer is “not a favorable time of year” for the precious metal.

“[Now] QE3 is out of the question… Bernanke is in no hurry to raise rates and, at the same time, rising inflation is beginning to be a bit of a concern,” Hansen said.

During Wednesday’s press conference, Bernanke announced that the Federal Open Market Committee had voted to keep the federal funds rate – its main policy rate of interest – between zero and 0.25 percent, and that it is likely to remain there for an “extended” period of time.

He also said that, what he called, “headwinds” of the US economy “may be stronger and more persistent” than what was initially anticipated.

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