Gold Set to End Losing Streak on Weaker Dollar

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In a research note released Monday, the analysts at Merrill predicted that gold prices will hit $1,500 an ounce and that oil will rise to $150 a barrel. They didn't specify when gold will hit the price target.

Gold futures rose Tuesday for the first time in four sessions as the U.S. dollar weakened, pushing dollar-denominated prices for the precious metal higher.

Meanwhile, the benchmark copper contract jumped more than 8%, rallying back past the $2.50-a-pound mark, on hopes that the latest U.S. government plan to directly inject capital into banks will rescue the ailing financial industry and in turn help spark economic growth.

The dollar's likely to fall as the government plans have the effect of applying upward pressure on inflation, analysts said...

"The unintended consequence of the ongoing financial bailout will be a return of inflationary pressures to the commodity markets," wrote analyst Francisco Blanch at Merrill Lynch.

Gold for December delivery rose $3.70, or 0.4%, to $846.20 an ounce on the Comex division of the New York Mercantile Exchange.

In a research note released Monday, the analysts at Merrill predicted that gold prices will hit $1,500 an ounce and that oil will rise to $150 a barrel. They didn't specify when gold will hit the price target.

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