|
Gold rallies as investors fret about inflation
Pratima Desai
Reuters
Monday, Dec 08, 2008
Gold surged on Monday, helped by higher oil prices,
a lower dollar and investor concern about inflationary pressures
given the large amounts of money being pumped into the global
economy.
Autocatalyst material platinum <XPT=> jumped more than
6 percent to $840 an ounce, while palladium gained more than 11
percent to $178 on growing optimism about a rescue for the auto
industry in the United States.
Spot gold <XAU=> rose nearly 3 percent to $776.70 an ounce
and was up at $773.90/775.90 at 1030 GMT from $754.60 in New York
late on Friday, when it fell to $740.40, the lowest since November
20 in a commodities-wide sell-off.
To some, talk of inflation is premature given the world is currently
grappling with the prospect of deflation, but forward looking
investors are adding to their holdings of the precious metal to
preserve the value of their portfolios.
(ARTICLE CONTINUES BELOW)
"We will see some deflation, but that will be shortlived
and the inflationary impact of substantial fiscal stimulus ...
will inevitably lead to inflation," said John Meyer, analyst
at investment bank Fairfax.
"Gold will be an important commodity in the protection of
value," he said. Fairfax expects gold to average $900 an
ounce next year compared with a previous forecast at $550. Central
banks have pumped cash into the world's financial system and slashed
interest rates in an attempt to ease the credit crunch and boost
confidence.
Chinese and European leaders are due to plot their next steps
on Monday to move the world economy back from a precipice, while
stimulus measures presented, planned or pending injected optimism
into stock markets.
Full
article here
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
