“The volatility in currencies has led to consolidation in gold,” said James Moore, an analyst at TheBullionDesk.com in London. “While a brief pause is expected as traders and investors lock in profits, we expect further gains with diversification and technical buying to drive gold toward $1,300.”
Immediate-delivery bullion added $1.10, or 0.1 percent, to $1,269.25 an ounce at 11:27 a.m. in London. Prices rose 1.8 percent yesterday, the most in four months and today swung between a gain of 0.3 percent and a loss of 0.1 percent. Gold for December delivery was 0.1 percent lower at $1,270.50 on the Comex in New York.
The metal rose to the highest ever price of $1,270.40 in the morning “fixing” in London, from $1,265.50 at yesterday’s afternoon fixing. The fixings are used by some mining companies to sell output.
“Most governments in the world want to depreciate their currency in order to stimulate growth” and exports and create jobs, said Mark O’Byrne, executive director of brokerage GoldCore Ltd. in Dublin. “You can’t depreciate gold or print more gold” and concerns that a recovery will boost inflation in future are positive for prices, he said.
The metal is set for a 10th annual gain. Prices rallied to a record as investors sought protection against financial turmoil in Europe and the prospect of slowing economic growth. Gold, traditionally a hedge against rising consumer prices, advanced 16 percent since the start of January even as U.S. inflation slowed.
GOLD MAY HIT $1350 THIS YEAR
Gold holdings in the SPDR Gold Trust, the biggest ETF backed by bullion, gained 6.08 metric tons to 1,298.70 tons yesterday, according to the company’s website. That’s the biggest daily increase since Aug. 17. Holdings reached a record 1,320.44 tons in June.
The precious metal may climb toward $1,350 this year as investment demand exceeds jewelry use for a second year, London- based researcher GFMS Ltd. said yesterday.
Dr. Pinna says:
Printing money is the new game. The printed money debases the value of all debt. This is the way out of the debt dilemma.
I guarantee that the Chinese Government is buying gold with its trillion U.S. Dollars.