Gold may hit $1500 soon
Published on: November 09 2010 12:05 GMT
LONDON (Commodity Online): Debt woes in the Europe and signals from the US on inflationary pressures pushed gold prices to new record heights on Tuesday.
Spot gold rose to an all-time high of $1,412.75 an ounce, before easing to $1,410.45. Spot silver hit a new 30-year high just below $28, and palladium extended gains to a new nine-year peak of $712.75.
According to market experts, liquidity is being thrown into the market place, the dollar is being debased as a way the US government can get out of debt obligations, while Asian central banks keep buying dollars and keep their currencies cheap. Hard assets are just going to continue to benefit.
The target for this round of gold rally could be $1,475 or even $1,500, in the next three weeks, experts said. Holdings in the world's largest gold-backed exchange traded fund, SPDR Gold Trust, gained 2.43 tonnes to 1,294.196 tonnes, their highest so far this month.
EU Economics Commissioner Olli Rehn said on Monday he had not discussed any need for a European Union bailout with Ireland, adding he believed market confidence would be restored once the country published its four-year plan to cut debt.
Gold prices have climbed nearly five percent since the US Federal Reserve announced last Wednesday its plans to purchase $600 billion worth of government bonds, and silver 13 percent.
Seasonal high demand is also supporting gold prices. Scrap selling is scant, and both customers and speculators remained cautious ahead of the group of 20 meeting on Thursday and Friday, which may give fresh clues on the direction of the dollar.
Source: http://www.commodityonline.com/news/Gold-may-hit-$1500-soon-33262-3-1.html
