Global inflation, stock volatility, the upcoming Chinese New Year holiday — you name it, there’s a reason out there for gold’s rapid rise and the likelihood it will hit a new eyeball-popping level of $1,000 an ounce reports MarketWatch on Yahoo News.
When they’re all taken together, however, the big lure to gold continues to be its tendency to hold value when the rest of the investment picture turns septic. As it’s done of late, with U.S. inflation measures hitting multi-decade highs, U.S. stocks starting off the year with their biggest drop in 30 years and the global outlook looking both inflationary and at risk of a slowdown.
“It’s pretty much an investment story,” said Neil Meader, research director at GFMS Ltd., a London precious metals consultancy that tracks global supply and demand data for gold. “We’re not really seeing supply constraints pushing the price higher; it’s not really driven by fabrication demand,” he said.
On Friday, the front-month futures on the New York Mercantile Exchange topped $900 an ounce for the first time, putting $1,000-an-ounce gold in the sights of some analysts.
Read it here: As Gold Traders eye $1,000, Inflation stirs the Pot