Friday, August 5, 2011

Gold Rallies as Japan Joins Global Currency War

"THE DOLLAR gold price climbed to $1671 an ounce Thursday lunchtime in London – just a Dollar or so below Wednesday's record high – while stocks and commodities fell after Japan became the second country in as many days to try to halt the rise of its currency.

Silver prices traded in a tight range around $41.70 per ounce – up 4.6% for the week so far.

The Euro gold price meantime set another record at the London Fix, at €1170.61 per ounce.

"It seems that investors hold gold in strong favor amid concerns of further debasement of fiat currencies," says a note from Swiss precious metals group MKS.

"People are looking for a safe haven," agrees Barclays Capital analyst Xin Yi Chen.

"Currencies like the [Swiss] Franc and Yen have...declined recently, so investors have very few places left to put their money... we expect investor flows to remain strong and gold's uptrend to continue."

Japan sold ¥1 trillion on Thursday in an effort to prevent the Yen rising further on the world's currency markets.

The Bank of Japan meantime increased by 20% the value of monetary stimulus program, boosting it to ¥50 trillion..."

at http://www.marketoracle.co.uk/Article29682.html

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