Commodity Alert :Gold edges higher as dollar hits two-week low
Gold was on track for its fourth straight session of gains as the U.S. dollar slid to its lowest in two weeks on concerns about the impact of high U.S debt levels and tax cuts. The higher rates will come as a product of inflationary pressures from the $1.5 trillion infrastructure rebuilding and the rebuilding of Florida, Texas, California. The greenback has been hit by several setbacks this year, ranging from the possibility Washington might pursue a weak dollar strategy to the perceived erosion of its yield advantage as other countries end their easier monetary policy. Concerns about the growing U.S. fiscal deficit have also weighed on the currency. Inflation fears boost gold, which is seen as a safe haven against rising prices. But expectations that the U.S. Federal Reserve will raise interest rates to fight inflation make gold less attractive since it is not interest-yielding.
Source : Reuters
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