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Gold hit a new high three times last week and is expected to soar to $2000/ounce by the end of the year. Many commodity expects are predicting gold to hit $5000 to $10,000/ounce in the years ahead as the US dollar continues to crash against the Euro. Gold is currently closing in on $1300/ounce.
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Yes, recent Fed meeting signaled more easing and even deflation fears. Funny thing is, it no longer seems to be helping the equity markets much. Lots of worry by some about going the way of Japan but we've been addicted to 'no interest' since early 2000s.
"US$ continues to crash against dollar"? Rubbish! Euro double-topped above 1.6 in 1-3Q 08 and in early 2010, it was still above 1.4. Now its just a bit above 1.33. Moreover, Euro has been plunging against Swiss Franc since early 2008 and recently printed a new all time low. But, US$ has fallen hard against Japanese Yen, the global currency used for margin investing, and got very close to its all time 1995 low of just under 80 a couple weeks ago. It now sits close to 84.5.
Old relationship was that gold behaved as 'anti dollar'. When gold appreciated, most non-US$ fiat currencies and esp. Aus $ and oil would go up too.
More recent relationship is that gold is 'anti fiat currency', w/Aus $ being partial exception (given its gold exposure and higher leverage to anticipation of more good growth in China) and independent of oil.
Eurozone is in trouble too so I expect currency to stay in range against US$ (around 1.25 - 1.45) unless Fed loses it and goes Zimbabwe with the presses. And that, BTW, is the only credible scenario for gold at US$5,000-10,000 an ounce in the coming years, IMO. Those levels would signal a true dollar collapse and we would all become US$ millionaires. The gold bugs have been at it for decades and wrong just as often as right.