|
|
|
Inflation fears may push gold back to $1,000/oz Humeyra Pamuk LONDON (Reuters) - Gold is poised to climb back above $1,000 per ounce this year, as inflationary pressures and financial turmoil prompt investors to seek shelter in the metal used as a store of value. But the caveat is gold's fortunes are traditionally strongly tied to the movement of the dollar and significant turnaround in the weak U.S. currency could limit its rally. "There's a good chance that it may go back above $1,000 in the short- to medium-term," said Richard Davis, a London-based fund manager at BlackRock. (Article continues below)
Record high oil prices, a soft dollar and turbulence in the banking sector sparked by the credit crunch pushed gold to a record high of $1,030.80 per ounce on March 17. Since then the metal has lost around 15 percent. However inflationary pressures highlighted recently by the U.S. Federal Reserve and European Central Bank will aid gold. "We're headed for inflationary times and gold has always been a safe asset to protect your wealth against inflation." With oil prices at a record high above $135 per barrel and food prices surging to their peaks, fears of inflation is haunting investors more than ever.
|
|
|
| PRISON
PLANET.com Copyright © 2002-2008 Alex Jones
All rights reserved.
|
Yahoo! MyWeb
