原创 Record Shows Investors Split With Banks (Update2)

Gold Rise to Record Shows Investors Split With Banks (Update2)

Gold also gained on concern that ballooning U.S. debt will continue to drive down the dollar. President Barack Obama has increased the nation’s marketable debt to an unprecedented $7.1 trillion as the government borrows to revive growth. Goldman Sachs Group Inc. wow gold predicts the U.S. will sell about $2.9 trillion of debt in the two years ending next September. wow gold “The government will have to accept a higher level of inflation to get the economy going again,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, who began trading gold in the 1970s. “The gold market is looking four to six months ahead. This is a monetary rally.” wow gold Competing Dollar Views sxcs1008 The gold price also conflicts with Wall Street’s consensus view of the dollar, which has slumped about 6.1 percent against a weighted basket of six major currencies this year. Deutsche Bank said on Oct. 1 that the U.S. currency will fall to $1.60 per euro in 2010, a drop of as much as 8.7 percent from yesterday’s $1.4722, because of “rising fiscal deficits and loose monetary policy.” The metal usually moves in the opposite direction of the dollar, which slumped 4.7 percent against the euro this year. wow gold Gold has more than tripled in the past eight years as the dollar tumbled 67 percent versus the euro, according to data compiled by Bloomberg. wow gold “People are selling the dollar to fund other plays at this point,” said Brian Kim, a currency strategist at UBS AG in Stamford, Connecticut. “People are concerned about currency debasement and obviously gold is a beneficiary of that.” wow gold The slump will abate and the dollar will rebound to $1.46 against the euro by year-end, and to $1.45 by March 31, according to the median forecast of 48 analysts surveyed by Bloomberg News. Forward rates suggest the dollar will be little changed in six months, at around $1.47. Gold as Currency Miller Tabak’s Greenhaus said the outlook for the dollar may need to change. “If there’s a decline in your currency, it takes more of that currency to buy something,” he said. “Gold is seen as a currency itself and a store of value. It is better than any currency because you cannot print more gold.” Gold is appreciating along with other assets, from commodities to stocks, because money is so cheap, said Leonard Kaplan, wow gold the president of Prospector Asset Management in Evanston, Illinois. The Fed has kept its target rate for overnight loans among banks between zero and 0.25 percent since December to help stimulate the economy. The Standard & Poor’s 500 stock index gained 17 percent this year, and the Reuters/Jefferies CRB Index of 19 commodities gained 13 percent, including a 97 percent jump in copper, a 60 percent rally in crude oil and a doubling of sugar prices. “The momentum for gold is higher from here,” Kaplan said. “The Fed has sent so much money into the market, so everything has to go up, including gold.”