Gold Climbs Over $960
May 23- Gold reached a two-month high this Friday, climbing over $960 an ounce for the first time since March as the falling U.S. dollar leads to the purchase of gold as a currency hedge. Spot gold reached a high of $961.30 an ounce, the highest price since March 20, 2009.
Gold futures in the U.S.for June delivery settled at $7.70 at $958.90 an ounce on the COMEX division of the New York Mercantile Exchange, while experts expect that bullion is poised to make further upcoming gains.
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Gold Rises To 2-Month High
May 21- Gold bounded to it's highest price since March as global equity slumps broadened the appeal of precious metals as an investment alternative. As equity markets slow and inflation fears on the rise gold prices are expected to trend upward. Gold futures for delivery in June gained $13.80 to $951.20 per oz. on the Comex division of the NY Mercantile Exchange. Gold continues it's positive trend, up 7.6 percent this year.
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Inflation Gets Gold Booming
NEW YORK - Purchasing gold continues to be a priority for diversified investors as a portfolio protection strategy against resurgent U.S. inflation as the Federal Reserve amps up the printing press to stimulate the economy out of the current recession.
Although a gold rally due to hyperinflation panic is not likely as the Fed has the ability to pull in money supply when the economy stabilizes, the current bull run of gold may not necessarily be a one-way street.
"This Fed is not an inflation biased... but a measured, well reasoned, rational central bank that knows that it has injected a huge sum of permanent bank reserve into the system, and that it will remove them eventually," said Dennis Gartman, independent investor and publisher of the Gartman Letter.
As evidence, a closely scrutinized marker of inflation expectations in the government bond market also shows that the expectations for long term inflation are on the rise.
"There are just not a lot of alternatives for global investors. You will see more and more investors moving into gold as a safe haven, and you will see more institutions putting money into commodities indexes," said Brian Hicks, a portfolio manager at Texas-based U.S. Global Investors, which manages over $2 billion fund assets.
Recently gold has become steadily tied in with the U.S. Treasuries market, which is generally thought to be a safe haven investment, and Treasuries prices indicated that investors need more time to come to terms with the long-range implications of the Federal Reserves actions.
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