原创 Record Shows Investors Split With Banks (Update1)

Gold Rise to Record Shows Investors Split With Banks (Update1)

Oct. 7 (Bloomberg) -- Gold’s rally to a record shows commodity investors remain concerned that the U.S. economic recovery will spur inflation even as Wall Street forecasts and government bonds suggest stable prices. wow gold Bullion has jumped 19 percent this year, heading for a ninth annual gain, wow gold after futures touched a record $1,045 an ounce yesterday and extended gains today amid rising demand for a hedge against inflation and a weaker dollar. Economists surveyed in the past month expect U.S. consumer prices to fall 0.5 percent this year,sxcs1008 the first drop in five decades. Demand for gold is increasing as U.S. government debt reaches record levels and the Federal Reserve keeps interest rates near zero percent. Inflation surged to a 14.8 percent annual rate in March 1980 after a four-year gain in gold that included a then-record $873 in January 1980.wow gold “Gold is a forecaster of inflation instead of a coincident indicator,” based on its surge before 1980, said Dan Greenhaus, the chief economic strategist at Miller Tabak & Co. in New York. “There’s nothing right now that says inflation will break out to all-time highs. But gold can move considerably higher from here. Should growth return, inflation will return.” wow gold Deutsche Bank AG forecast on Oct. 1 that gold may top $1,100 in 2010. Mark O’Byrne, an executive director at Dublin- based brokerage GoldCore Ltd., wow gold said demand for a hedge against financial risk will send the precious metal to $2,000. He didn’t specify a date. Gold for December delivery was at $1,048.90 an ounce at 4:45 p.m. in Singapore today after rising 0.9 percent. Producers Surge Gold producers advanced on bullion’s gain. Newcrest Mining Ltd., Australia’s biggest gold-mining company rose as much as 7.5 percent in Sydney today, and Sino Gold Mining Ltd. surged 9 percent in Hong Kong. Newmont Mining Corp., the largest U.S. producer, added 7 percent yesterday. The outlook among gold buyers conflicts with government and economist forecasts as the U.S. emerges from the worst slowdown since the Great Depression. wow gold Federal Reserve Bank of New York President William Dudley said on Oct. 5 that slowing inflation is “problematic” for the economy and that interest rates should stay low. His remarks bolstered comments made in the minutes of the Fed’s September meeting that “inflation will remain subdued for some time.” Gross domestic product shrank in the past four quarters, including a 6.4 percent plunge in the first three months of the year, government data show. The economy will contract 2.6 percent this year, based on the median of 57 estimates in a Bloomberg survey as of Sept. 11. Consumer prices will fall 0.5 percent, before rising 1.9 percent in 2010, based on the median of 47 estimates collected by Bloomberg. The average gain in the previous decade was 2.5 percent. Bond-Inflation Outlook Bond investors don’t see prices accelerating, based on the difference in yields between 10-year notes and similar-maturity Treasury Inflation Protected Securities. The so-called breakeven rate shows traders expect consumer prices to rise an average 1.75 percentage points annually over the next 10 years, compared with this year’s high of 2.13 percentage points in June.