Gold Seen Climbing as Yellen Sets Scene for Negative Rates
- Interest rates to go deeper into negative territory: Gordon
- Yellen ‘very, very clear’ she’s keeping to rate hike path
UBS' Gordon Sees Better Gold Prices After Fed Hike
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Gold will rise after the Federal Reserve pledged to stick to its gradual pace of tightening as negative real interest rates deepen and weigh on the dollar, according to Wayne Gordon, executive director for commodities and forex at UBS Group AG’s wealth management unit.
The Fed raised rates by a quarter percentage-point Wednesday, and policy makers penciled in two more quarter-point increases this year and three in 2018, unchanged from projections in December. Chair Janet Yellen said the central bank was willing to tolerate inflation temporarily overshooting its 2 percent goal and intended to keep its policy accommodative for “some time.”