Gold Surges Amid Deflation Concerns

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Hard assets for hard times,'' said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. "Even with all the money central banks have thrown at the financial system, it's not enough to stop systemic risk. People are looking for something that's going to go up, and that's gold.''

Gold rose, heading for the biggest weekly gain since September, as the global economic slump dragged down asset prices and boosted the appeal of the precious metal as a store of value. Silver and platinum also gained.

Gold was the biggest gainer today, followed by silver, among 19 commodities on the Reuters/Jefferies CRB Index. As economies in the U.S., Japan and Europe head into recession, central banks may be forced to lower interest rates and pump more liquidity into the financial system, devaluing their currencies, analysts said.

"Hard assets for hard times,'' said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. "Even with all the money central banks have thrown at the financial system, it's not enough to stop systemic risk. People are looking for something that's going to go up, and that's gold.''

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