2011-09-21

Gold is a good safe haven

Gold extended its gains Wednesday morning, as gold price surged $30.80, or 1.7%, to $1,809.70 per ounce. The rebound in gold follows the sector’s large declines from yesterday. Monday’s weakness was fueled by considerable strength in the U.S. dollar, particularly against the euro currency. On Tuesday, however, gold and silver bounced back alongside the general commodities complex despite stabilization in the euro/dollar currency cross near 1.3670.

Dennis Gartman, the long-time commodities investor and publisher of The Gartman Letter, wrote on Monday that given strength in the U.S. dollar, commodities and equities are likely to remain under considerable selling pressure. “We have to believe that gold too shall be and remain lower,” Gartman wrote. “There’s no other course of action” for the gold price to follow, he continued.

While Gartman’s short-term bearish outlook for the gold price appeared quite prescient given yesterday’s sell-off, many other investors see escalating sovereign debt and recession concerns across Europe and the U.S. as key catalysts for higher gold prices over the longer-term. One individual to share this view is Tony Hall, whose Duet Commodities Fund Ltd. has surged 33% year-to-date. According to Bloomberg, Hall recently predicted that the gold price may reach a new all-time high of $2,200 per ounce by the end of this year.

“The fear of recession, the fear of worse economic numbers is weighing on commodities and stopping gains from fundamentals from coming through,” Hall stated. “We still believe in the gold story. If you believe the world is in trouble or in further economic growth disruption, then gold is a good safe haven. If you believe that the world is going to come out okay, then it’s a good inflation hedge.”

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Malaysia Gold Investment

I found Gold Investment in Malaysia is a vary good tools to make profit when the market is down. I also found that Gold Price go up and down more slower compare to share market so to make money in long term, Gold is the right tools. This blog is all about Malaysia Gold Info and the way to make profi

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