Fears about inflation push up gold prices to new record. For the June delivery contract on the Comex in New York Mercantile Exchange rose 0.4 percent to a level of U.S. $ 1,458.50 an ounce on Wednesday, April 6th or Thursday morning Indonesian time. In fact, according to the Telegraph, the price of spot gold in London has scored all-time highs record, U.S. $ 1,462.93.
According, Gold Traders Association and Permata Indonesia (APEPI) predicts gold price at the end of 2011 could penetrate U.S. $ 1,500 per ounce. "Indeed, the association estimates there are already the world gold price hikes in 2011 to U.S. $ 1,450, but this is not taking into turmoil the Middle East and Libya," said Executive Director APEPI, Iskandar Hussein, at Surabaya, Thursday, April 7, 2011.
In addition, according to Iskandar, gold prices will also continue to experience strengthening high enough, because until now the gold demand surged. "India and the Middle East are the countries that demand is huge," he said. Also considered a long-term investments of the most secure than the stock market and other investment, gold prices have never experienced a decrease in price.
Market hunt for gold because of speculation the U.S. will fight push consumer prices. Federal Reserve Chairman Ben S. Bernanke mentioned the need for strict control of inflation. This shows a difference of opinion in programs that seek to stimulate economic growth. U.S. has been keeping interest rates at low levels since December 2008.
Kingsview Financial market analysts said Matt Zeman, the market is very worried about inflation, especially with sufficient length of the central bank keep interest rates at low levels. "In the eyes of investors, Bernanke's reputation as a highly questionable to fight inflation. The people continue to buy gold," he said.
Meanwhile, the position of the U.S. dollar weakened 0.9 percent against the euro on speculation the European central bank will raise interest rates by 25 basis points to 1.25 percent. "People do not have enough confidence in the dollar," said Zeman.
On the other hand, yesterday, China raised interest rates for the fourth time since mid-October for fear of consumer prices last month rose the fastest pace since 2008. "The acceleration of inflation in China is positive for gold. Most investors collected gold as a hedge against rising consumer prices," said Edel Tully, an analyst at UBS AG in London.