Gold at Record Shows Investors Split With Banks Over Inflation (GoldCore Quoted in Bloomberg)

7 October 2009  Bloomberg.com

Gold’s rally to a record shows commodity investors remain concerned that the U.S. economic recovery will spur inflation even as Wall Street forecasts and government bonds suggest stable prices.

Bullion has jumped 19 percent this year, heading for a ninth annual gain, after futures touched a record $1,045 an ounce yesterday and extended gains today amid rising demand for a hedge against inflation and a weaker dollar. Economists surveyed in the past month expect U.S. consumer prices to fall 0.5 percent this year, the first drop in five decades.

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Deutsche Bank AG forecast on Oct. 1 that gold may top $1,100 in 2010. Mark O’Byrne, an executive director at Dublin- based brokerage GoldCore Ltd., said demand for a hedge against financial risk will send the precious metal to $2,000. He didn’t specify a date. Gold for December delivery was at $1,048.90 an ounce at 4:45 p.m. in Singapore today after rising 0.9 percent.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXYAcH3JiSo0