As we discussed yesterday, gold prices will move upwards when markets expect inflation. This happens as gold is seen as a good store of value. They did exactly that overnight. Our reporter Julian Harris writes:
The price of gold rebounded sharply last night after US Federal Reserve chief Ben Bernanke leapt to the defence of its unprecedented quantitative easing programme.
The yellow metal jumped around 1.3 per cent to hit $1,614.11 an ounce in the early hours of this morning.