LBMA Sees $1,450 Gold
Source: Business Day (9/29/10)
"Fall in consumer confidence far worse than economists expected."
That poll produced delegates' estimates for spot silver at $24/oz., platinum at $1,857/oz. and palladium at $702/oz. in September next year.
Regarding gold's main traditional drivers, 64% of respondents said they expected the dollar to be weaker this time next year and 63% saw U.S. inflation rising in the same period.
"The degree of uncertainty out there at the moment is one of the reasons gold has come up," Paulson & Co. Precious Metals Strategist John Reade said in a presentation to delegates.
The gold price shot through a fresh record yesterday after losses earlier in the day. It shot back through $1,300 to trade at $1,307,58 and was last quoted at $1,306,09.
A strong dollar and profit taking saw gold trade lower yesterday morning, when it fixed at $1,289 in London. The latest surge was sparked by weaker-than-expected U.S. consumer confidence and manufacturing data.
The data contributed to the dollar's slump against major currencies, including the euro. The euro was at new five-month highs at 1,3509 during the afternoon session and was last bid at 1,3546.
Private research group Conference Board's index of consumer confidence fell to 48.5 this month from a revised 53.2 last month. The reading was far worse than the 52 expected by economists and is the lowest since February.
"The growing realization that ultra-loose monetary policies may debase currencies is leading to continuing safe-haven demand for gold. Gold is the only currency that can't be debased; its value isn't dependent on the performance of politicians and central bankers," GoldCore analysts said.