Gold Jumps on Concern Fed Stimulus Will Spur Inflation
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Gold jumped the most since November as Federal Reserve Chairman Ben S. Bernanke defended the U.S. central bank’s asset purchases, boosting demand for bullion as a hedge against stimulus-fueled inflation.
“We do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery,” Bernanke said today in testimony to the Senate Banking Committee in Washington. “Inflation is currently subdued, and inflation expectations appear well anchored.” Expectations that the Fed would slow asset purchases helped send gold prices down 3.6 percent this year.