...when Au is sub 700 within a year, yet more ephemeral causal inferences will be dusted off and plied for explanatory traction.
There will also be attendant outrage at what will be the obvious difference between owning physical gold and owning a financial claim to a trust or security deriving its value from traded gold prices.
Gold climbed to a record in New York as the dollar extended its decline, boosting demand for precious metals as alternative assets. Silver advanced to a 30-year high.
Gold reached $1,333.80 an ounce as the dollar dropped as much as 0.7 percent against a basket of six currencies. Federal Reserve Chairman Ben S. Bernanke said yesterday the U.S. central bank may buy more debt to help the economy. The Bank of Japan today pledged to keep its benchmark interest rate at “virtually zero.” Since Sept. 14, gold has risen to a record 12 times.
“When governments are in the business of printing money, gold is going to do well,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “More quantitative easing is inevitable at this point for the U.S. The dollar is going to suffer, and gold is going to take out records along the way.”
Gold futures for December delivery rose $16.10, or 1.2 percent, to $1,332.90 at 9:29 a.m. on the Comex in New York. Before today, gold had gained 20 percent this year.
In London, gold for immediate delivery is up 21 percent this year and headed for a 10th consecutive annual gain, the longest winning streak since at least 1920. Bullion has outperformed global equities, Treasuries and many industrial metals, prompting record investment in gold-backed exchange- traded products.