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CityWire: Gold falters but low rates mean there are still plenty of buyers

LONDON, 19 February 2010 - - the world-leading gold ownership - features today in analysis of the gold market published by CityWire, the independent UK news and data site part-owned by Reuters Thomson.

Noting that the gold price fell this week on news of the International Monetary Fund's plan to sell 191 tonnes in the open market, "again gold recouped some of the lost ground" after then dipping on a rise in the interest rate charged by the US Federal Reserve for emergency loans to commercial banks, says CityWire.

Pointing out that gold prices soared during the 1970s - the last time that real interest rates after inflation were this low for savers - "Can the economy bear higher interest rates at the moment?" the subscription service quotes Adrian Ash, head of research at BullionVault.

"It is pretty safe to assume that Federal Reserve chairman Ben Bernanke is not moving towards that - and he said as much yesterday," says Ash.

You can read the whole story at CityWire here...