Gold prices are looking even more vulnerable after April's price crash, as rampant inflation expected from successive rounds of monetary easing fails to materialise.
The idea that record-low interest rates would damage paper currencies and boost inflation was a key factor pushing gold to record highs in the wake of the financial crisis.
Ultra-loose monetary policies are still in vogue, but gold prices have slid nearly 20 per cent since the start of the year and are on track for their biggest quarterly drop in more than 15 years.
via Business feed http://www.scmp.com/business/commodities/article/1246933/gold-faces-increased-pressure-inflation-stays-tame
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