Hedge funds guessed right when they bet on a gold rally before prices went onto to their biggest two-week gain in 20 months as the Federal Reserve Chairman Ben S. Bernanke speculated that a slowing of quantitative easing appeared to be on the horizon.
An 11 percent rebound mean gold reached a 34-month low on June 28 as the declines spurred physical demand. Japan’s biggest gold retailer, in fact, said on July 18 that its sales tripled in the second quarter from the previous three months.
According to Ben Bernanke, gold prices have fallen this year because investors are less stressed about armageddon and the perceived need for “disaster insurance.” Gold had entered into a bear market in April.
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