5 Replies to “What is reason behind gold is increasing rate?”

  1. 1. An under supply of newly-mined gold.

    2. Gordon Brown striking out on his IMF gold sales proposal, with the US opposing it.

    3. The Washington Agreement supporting gold by being generally against excessive Central Bank gold sales.

    4. The real possibility of Asian countries buying whatever gold the European Central Banks dish up.

    5. The never-ending story of the US trade deficit.

    6. Gold is a “de facto currency” and therefore not subject to demand deficiencies caused by world wide economic slowdowns cn.ecntrade.

    7. Gold is an inflation fighter and they can see stagflation approaching.

    8. It’s a natural hedge against the US dollar.

    9. It traded predominantly between $420 and $435 this year, thus setting a new price floor, which is considered a “strong buy signal.”

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