Federal Reserve and Bullion

Money managers: Money managers who hoarded bullion at the fastest pace in more than a month were rewarded with the biggest rally in prices since January, according to Bloomberg. Weaker U.S. consumer confidence and softening factory production drove the dollar lower for a fifth week, the longest stretch since 2013. At least that what hedge funds are betting. Gold, first struck into coins more than two millennia ago, is still sought by some investors as an alternative currency or hedge against inflation. Record-low rates increase bullion appeal because the metal doesn’t pay interest, unlike competing assets such as new bonds. Signs of cooling expansion mean the Federal Reserve could wait longer before raising interest rates, increasing the chances that inflation will accelerate. (news.financializer.com). As reported in the news.