Gold News

Buying Gold a 'decent way' to hedge against inflation

A senior figure at UBS AG in London has suggested today (March 19th) that Buying Gold is a sound approach for anyone with inflation fears, Bloomberg reports.

The yellow metal has proved popular in recent months for its safe-haven qualities as governments have continued to struggle in their attempt to revive the economy.

With the Fed also announcing a $1.15 trillion investment in treasuries to tackle the situation, Daniel Brebner, director of commodity research at the firm, has explained that now may be good time for Investing in Gold.

He told the news provider: "Money is being pushed into the system and that's creating the inflationary threats that the markets are contemplating.

"Commodities are a decent way to hedge against that potential threat."

Mr. Brebner's comments were echoed by US economist Dennis Gartman, who explained in his Gartman Letter today that the central bank's action will have worrying consequences for the dollar.

This will come as a boost to anyone with a gold investment, as the greenback tends to trade in the opposite direction.

"The Fed's decision yesterday broke the dollar's back. This sets the tone for how we shall trade commodities henceforth; bullishly and almost universally so," wrote Mr. Gartman, according to the news provider.

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