Bloomberg reports that gold has reached a record of $1,341.20 an ounce, and that silver has also achieved a 30 year high of $22.655. Gold’s performance is explained by the continuing devaluation of the US dollar by the Federal Reserve to bolster the economy.
Matthew Zeman of LaSalle Futures Group in Chicago commented, “When governments are in the business of printing money, gold is going to do well. 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.”
Petropavlovsk Plc Chairman Peter Hambro predicted that gold would reach $1,500 by year-end, and may go as high as $2,500 by next October.