The Fed will maintain a zero interest rate until 2013.

The Fed will maintain a zero interest rate until 2013.

On Tuesday, August 9, the U.S. Federal Reserve System (FRS) announced that it will continue its low interest rate policy for at least two more years until 2013 and reserves the option to take additional liquidity measures, although not nothing was said about the start of the third phase of the QE3 quantitative incentive.

“The tone of the Fed’s statements has supported gold as a defense against stock market volatility. This means that portfolio managers will keep gold in their portfolios until 2013,” said George Gero, vice president of RBC Capital Markets Global Futures …

Gold lived up to its safe haven status, jumping about $ 25 above its record closing level minutes after the Fed’s decision was issued, while stock markets quickly withdrew their initial losses. Many investors consider gold to be a safe haven from economic uncertainty because it is better than other assets at maintaining its value in the face of volatility.

“Investors are now simply looking for the smartest asset to invest in and given the sovereign debt problem, there are few good alternatives,” says Matt Zeman of Kingsview Financial, adding that gold is one of the few safe havens left.

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