Within a month, Gold Print record ninth time? ~ MAKE MONEY BLOG$

4/21/11

Within a month, Gold Print record ninth time?

6:41 AM

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Erlangga Djumena
NEW YORK, KOMPAS.com - Gold prices set records for the ninthtime in this month as the weakening U.S. dollar. The weakeningdollar has fueled demand for precious metals as an investment inalternative assets. Silver also hit a record 45 U.S. dollars per troyounce for the first time since 1980.

Gold touched the level of 1506.50 U.S. dollars per troy ounce inNew York as tergelincirnya U.S. dollar by 1 percent against sixmajor world currencies. This is its lowest level for 16 months. The weakening U.S. dollar after Standard & Poor's revised theprojection of U.S. long-term debt to negative. U.S. Treasuryforecast of government debt would reach 14.3 trillion U.S. dollarsto 16 May and running out of options to avoid default in early July.

Gold futures for June delivery rose 0.3 percent to a level of1498.90 U.S. dollars per troy ounce at 1:37 pm on the Comex,New York. Meanwhile, gold for immediate delivery in London rose0.6 percent to a record 1506.03 U.S. dollars per troy ounce.

Senior Financial Analyst at Kingsview, Zeman, assess, S & P'sstatement as the more pressing when the market is weakening.Dollar loses its status as a major investment and gold to take his place. "Figures from the Treasury Department shows the debt not be repaid without weakening dollar which raises the idea of investors to collect the gold," said Zeman.

The rate of gold prices also supported the demand for hedgingagainst inflation. The Thomson Reuters / Jefferies CRB index of 19commodities showed up 1.7 percent. This shows U.S. inflation expectations close to its highest level since 2008.

"Fears of inflation, currency depreciation, debt in the European region, and unrest in the Middle East and North Africa continue toboost demand for investment in gold," said TheBullionDesk.comanalyst, James Moore, in London.