For all its talk of cutting back on the monetary stimulus, the US Federal Reserve may be in no position to end its monthly bond purchases in 2014, feels Richard Duncan of Blackhorse Asset Management Co.
The US Federal Reserve's decision not to cut back its monthly bond-buying programme, may have unwittingly set the stage for a deeper correction, sometime in the next couple of months.
Bullion lost nearly a quarter of its value this year on concerns the US Federal Reserve's monthly bond purchases will be pared soon. But gold is now headed for biggest weekly gain in nearly 2 years on easing fears of an early end to US monetary stimulus.