Gold Prices Go Up

[discocrisco01]

Dec. 31 (Bloomberg) -- Gold advanced, poised for a 10th annual gain, as investors sought to protect their wealth against accelerating consumer prices and declining currencies. Silver, platinum and palladium headed for second yearly advances.

Bullion for immediate delivery rose as much as 0.4 percent to $1,410.30 an ounce and traded at $1,409.93 by 4:33 p.m. in Seoul. Futures for February delivery gained 0.3 percent to $1,410.10 an ounce on the Comex in New York.

"Gold's rally will continue next year as inflation pressures continue to build and as currencies remain weak," said Li Ning, an analyst at China International Futures (Shanghai) Co. "The global economy is recovering but we're not completely out of the woods quite yet and gold's safe-haven status will increase investment demand."

Gold has jumped 29 percent this year after governments spent trillions of dollars and kept interest rates low to bolster economies after the worst global recession since World War II, fueling inflation and driving currencies lower. Bullion has also reached all-time highs in British pounds, euros, Swiss francs and yen this year.



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[roamer65]

1. $1400 an ounce will be considered cheap in a year.

The Fed is hamstrung. They cannot appreciably raise interest rates, or they will kill off the economy. They have to continue QE in order to ensure adequate liquidity to the system. Double-digit inflation is not far off.

Gold and silver prices right now will be considered bargain prices in 2012.