Gold News

Gold Prices 'to reach $1,200 per oz' by end of 2009

Exotic FX Alert editor Ashish Advani outlined a number of reasons yesterday (June 15th) why he believes Gold Prices will hit $1,200 per ounce by December 2009.

Writing on, the experienced market commentator explained that inflation will begin to rise as a result of the increasing yields on ten-year US Treasuries.

Investors tend to Buy Gold as a hedge against inflation and Mr. Advani also stated that "the Fed will continue to print more money and the Treasury will issue more debt to finance the perpetual spiral of growing deficit".

"The trilogy of causes will ensure that hold prices will continue their upward ascent at a fairly rapid pace in the next few months and years," he wrote on the website.

"I anticipate we could see gold at $1,200 by end of this year."

Those comments were strongly corroborated last week by Axel Merk, who manages the California-based Merk Hard and Asian Currency Funds.

He explained in an interview with Reuters that gold - which tends to move in the opposite direction to the dollar - will benefit from a prolonged period of devaluation for the greenback.

"If I look at ten years from now, I do believe that the purchasing power of the dollar is going to be substantially less," he said.

"Gold is ... the simplest way to play the devaluation of the dollar and potential inflation."

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