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By Benedicte Gravrand, Opalesque London:
Gold is a hot topic among hedge funds in the present days of falling dollar and inflation – a situation when the yellow metal becomes all the more attractive as it is generally perceived as a hedge against monetary and economic calamity.
Gold futures touched $1,042 an ounce after a report showed the U.S. economy expanded for the first time in a year, reported Market Watch yesterday. Gold for December delivery rose $11.50, or 1.1%, to $1,042 an ounce on Thursday. On Comex, it went up $0.30 at $1,047.40 this morning. Silver for December delivery rose 39 cents, or 2.4%, to $16.63 an ounce on Thursday.
Tundra: Buy gold stocks, buy silver
Gold is the ultimate currency, claimed Jean-Francois Ruel, president of Montreal-based firm Tundra Finance at Wednesday’s Jetfin conference on commodities and energy in Geneva. And another hard fact about gold is that it is inversely correlated to the dollar.
Since 2001, gold has been up and should continue going up not only because the dollar is going down but also because there is a big appetite for gold. Indeed, the metal has outperformed equities since 1999, he said.
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