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By John Waggoner, USA TODAY
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By John Waggoner, USA TODAY
But managers remain optimistic about gold, because central bankers are likely to keep injecting money into the economy to avoid recession. The Federal Reserve has said it will keep interest rates low through mid-2013, which makes loans cheaper for businesses and consumers. Currently, short-term interest rates are negative, once adjusted for inflation, which ran at a 3.8% pace through August.
"The Fed's monetary policy is the obvious lever for gold," says Caesar Bryan, manager of Gamco Gold.
Managers expect that European central banks will also lower rates to combat recession. "We're standing aside and waiting for the Europeans to come up with their plan of attack," says Robert Cohen, manager of Dynamic Gold and Precious Minerals fund. "Ultimately, that translates into more printing of money."
Cohen expects gold to ultimately rise above $2,000 an ounce.
"The Fed's monetary policy is the obvious lever for gold," says Caesar Bryan, manager of Gamco Gold.
Managers expect that European central banks will also lower rates to combat recession. "We're standing aside and waiting for the Europeans to come up with their plan of attack," says Robert Cohen, manager of Dynamic Gold and Precious Minerals fund. "Ultimately, that translates into more printing of money."
Cohen expects gold to ultimately rise above $2,000 an ounce.
Gannett claims 3.2 million daily readers and nearly 24 million daily visitors to the website.
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