"Dollar in demand, gold dives to five-year low."
Wayne Cole, July 19, 2015, Reuters
The U.S dollar held broad gains in Asia on Monday as investors looked ahead to higher interest rates from the Federal Reserve, while gold slumped to five-year lows as a lack of global inflation left little to hedge against.
The precious metal XAU= ran into a wave of selling in Asia that drove it down 3.9 percent to $1,089.80 an ounce, having already suffered its worst weekly performance since March last week. ...
There was better news from China where home prices rose for a second month in a row in June, suggesting government efforts to boost the struggling property sector have started to gain traction.
China stocks seem to have pulled out of their recent nosedive amid a barrage of measures from regulators and buying by brokerages and mutual funds.
The reasons given for a drop in the price of gold are the Chinese central bank's monetary easing policies to prop up the housing market and the central government's decision to re-nationalize much of the equity market. It is time to buy gold. The time to buy a hedge against inflation is precisely the time the rest of the world thinks there is "little to hedge against."
