Do you feel that Gold will continue on an upswing in 2010?
Date : 19/01/2010
Author: Markaz Analyst Club
Or will economic recovery in the US and a strengthening Dollar lead to Gold falling out of favor with investors?
Tags: Gold, Markaz Analysts Club
Gold has traditionally been used as a hedging device against a weakening US Dollar, low interest rates and inflationary fears. These conditions prevailed in 2009, leading Gold to reach a record high of USD1,227.50. Additionally, the Reserve Bank of India announced a purchase of 200 ton of Bullion from the IMF, a symbol to the lack of confidence in the greenback. Gold, which typically moves inversely to the dollar, rose 24% last year as the dollar fell 4.2%.
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