Gold rebounded on Friday after the last session's
sell-off, but the precious metal was virtually flat for
the year to date and posted a weekly drop of nearly
4 percent on deflation worries and a lack of
aggressive Federal Reserve stimulus.
• In early trade, gold briefly crossed into negative
territory for 2012, extending Thursday's 2.5 percent
drop. Investors were frustrated by the Fed's decision
this week to lengthen its "Operation Twist" program
aimed at lowering long-term interest rates instead of
a new outright bond purchase program.
• Inflation fears have helped fuel several years of
strong gains for gold, but investors are starting to
worry about deflation after reports this week showed
signs of slowing economic activity around the world.
• Indian gold buying has been hurt by a bad monsoon
season and a record low in the rupee, which pushed
local gold prices to an all-time high. India's
government's decision to double import duty on gold
to 4 percent also weighed heavily.
sell-off, but the precious metal was virtually flat for
the year to date and posted a weekly drop of nearly
4 percent on deflation worries and a lack of
aggressive Federal Reserve stimulus.
• In early trade, gold briefly crossed into negative
territory for 2012, extending Thursday's 2.5 percent
drop. Investors were frustrated by the Fed's decision
this week to lengthen its "Operation Twist" program
aimed at lowering long-term interest rates instead of
a new outright bond purchase program.
• Inflation fears have helped fuel several years of
strong gains for gold, but investors are starting to
worry about deflation after reports this week showed
signs of slowing economic activity around the world.
• Indian gold buying has been hurt by a bad monsoon
season and a record low in the rupee, which pushed
local gold prices to an all-time high. India's
government's decision to double import duty on gold
to 4 percent also weighed heavily.
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