| Most explanations for these results point to the various geopolitical risks that have generated jitters across a number of markets. However, there is another explanation. Expectations that monetary policy will remain loose across major economies longer than originally anticipated have been driving gold higher. Here are some key indicators supporting this thesis:
1. As discussed earlier (here), China's monetary policy continues to be quite supportive for credit expansion. 2. Japan's growth will likely fall short of the BOJ's projections (see chart), prompting the central bank to accelerate QE or at least maintain it over a longer period. Credit Suisse: "We see additional BoJ easing coming in November."..............................................Full Article: Source
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