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Gold approaches record after Fed chief's remarks

Release Date: 
Monday, December 6, 2010

The price of gold on Monday approached record levels it set early last month following Fed chief Ben Bernanke's statement to 60 Minutes that the U.S. economy might be due for additional stimulus, Bloomberg reports.

Mr. Bernanke explained that the Fed may consider additional stimulus measures
during its final 2010 meeting next week based upon the status
of the economy.

"Without a stronger dollar, gold would probably trade higher," Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, told Bloomberg.

Serving as security against wobbly currencies whose values tend to fluctuate during rough economic times, gold futures were trading no more than one percent away from the November 9 record price of $1,424.30. The value of the dollar increased 1.2 percent.

The Fed chief's remarks "are largely bullish for precious metals," according to a report penned by Walter de Wet, an analyst at Standard Bank Plc in London. "More liquidity means a further boost for precious metals, especially gold, as well as a weaker dollar."
 

This news article is independently provided by Brafton and does not represent the views or opinions of Goldline International, Inc. Although the information in this news alert has been obtained from sources believed to be reliable, Goldline does not guar­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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