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Gold shines brightly, but is it a bubble?
With a price surge of about 20% during the last 12 months, anyone who bought gold a year ago should be sitting pretty. But such a vertiginous rise may be causing uneasiness among some traders and investors, prompting them to ask the question favoured by sceptics and the ultra-cautious: are we in bubble territory? If the answer is yes, then the likeliest instrument to prick that bubble would be America’s central bank, the Federal Reserve. In a variation of the post-crisis theme that good news can be bad news, positive commentary from the Fed on the state of the US economy recently spooked holders of the yellow ... (full story)