Those who see prices higher said momentum is continuing to carry gold prices up, along with underlying accommodative monetary policy.
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German leaders are unlikely to risk the scorn of voters by repudiating their cultural aversion to overly accommodative monetary policy.
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There was no suggestion, however, that doing so would bring their accommodative monetary policy (low interest rates) to an end.
"The RBA is not interested in shifting to accommodative monetary policy to 'save' house prices or to restore dwelling construction, " she added.
Second, the Federal Reserve has been running a highly accommodative monetary policy.
The Fed chairman seemed to acknowledge that the job market might be weak for a time, but indicated that policy-setters already have accommodative monetary policy.
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That remark helped to sink the U.S. dollar index and rally gold and silver, on notions the Fed will continue have a very accommodative monetary policy.
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Finally, the head of the Federal Reserve sought to reassure markets that his institution had all the tools at hand to rein back accommodative monetary policy when needed.
Several others said the move made by officials during the EU Summit flagged the beginning of more accommodative monetary policy out of Europe which is ultimately bullish for gold.
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Hopes for further accommodative monetary policy from the Federal Open Market Committee abated earlier this year after non-farm payrolls grew for three straight months by more than 200, 000 jobs.
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Any rise in the unemployment rate moves farther away from the level at which the Federal Reserves says it will begin to increase interest rates and ease its accommodative monetary policy.
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Accommodative monetary policy in developed economies and an extended low-rate environment will both pump up demand for gold and reduce the opportunity cost of holding it as an investment, reads the note.
In addition, European Central Bank President Mario Draghi said that the central bank would preserve the integrity of the euro zone, a signal that it would continue with its accommodative monetary policy.
An accommodative monetary policy would involve keeping the fed funds rate (the short-term rate at which banks lend to each other) at historic lows so as to encourage consumption and provide cheaper credit to consumers and businesses.
Also, the market began working its way higher again after a policy statement following a U.S. Federal Open Market Committee meeting Wednesday showed that the Fed intends to stick with its accommodative monetary policy, said Sean Lusk, gold and silver analyst with Ironbeam.
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Outside the U.S., the Stoxx Europe 600 finished the day up 1.6%, adding to Monday's 0.3% gain, after European Central Bank official Joerg Asmussen helped lift investor spirits by saying on Monday that the ECB will keep its accommodative monetary policy in place as long as necessary.
He also hinted that accommodative Fed monetary policy is still needed to keep the U.S. economic wheels greased.
Markets have been under pressure since Tuesday when the Federal Reserve released FOMC minutes stating that the committee would be less accommodative with monetary policy.
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Mr. Draghi also restated his pledge to preserve the integrity of the currency area, while saying there was no need for the central bank to unwind its accommodative monetary-policy stance.
In determining how long to maintain a highly accommodative stance of monetary policy.
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To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.
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Term deposits are be one of several tools that the Federal Reserve employs to drain reserves when policymakers judge that it is appropriate to begin moving to a less accommodative stance of monetary policy.
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy.
To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.
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The central bank action has supported commodity prices in general as the banks will likely keep monetary policy accommodative as countries need to work through debt problems.
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Reading between the lines, it appears the Fed, while keeping its monetary policy very accommodative, is beginning to lay the ground work ever so slowly that its money-printing presses cannot roll on forever, especially as the U.S. economy is picking up a slight head of steam.
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No action could mean further softness in the economy, furthermore monetary policy is already accommodative anyway.
The banking system is gradually healing and the housing market is recovering, while global monetary policy remains extremely accommodative.
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Given that the Japanese monetary policy is already accommodative, a new CPI or inflation target may not have a commanding impact.
Asia was also on hand to offer approval: The Bank of Japan said it "supported" the action, but noted that its own monetary policy was already accommodative.
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