LONDON (Commodity Online): Global liquidity could chase gold prices higher. An important foundation of the gold rally is rising global liquidity levels, said HSBC in a research note.
Federal Reserve Chairman Ben Bernanke told a House of Representatives committee Thursday that the bank would consider additional quantitative easing if progress toward full U.S. employment remains inadequate. There has been a ramp-up in the European Central Bank’s balance sheet, in conjunction with the Fed’s and Bank of England’s already-expansionary monetary policies.
Meanwhile, HSBC fixed-income research anticipates more-dovish monetary policy in Asia, including China and India.
“This could have the indirect effect of supporting demand for gold jewelry in key consuming nations in Asia, notably China and India,” HSBC concluded.
