Gold may extend its rally The National Post reports in its Monday edition that gold may extend its rally for a third week to a 24-year high. A Bloomberg News dispatch to the Post reports that investors buying bullion to hedge against inflation is pushing prices higher. Fifteen of 34 global traders, investors and analysts surveyed this weekend advised buying gold. Seven advised selling and 12 were neutral. Gold rose 4.3 per cent last week to $541.20 (U.S.) an ounce in New York. That marked its highest closing since March, 1981. Some gold buyers speculate the United States Federal Reserve will ignore signs of accelerating inflation. Some observers expect the Fed to halt the interest-rate hikes begun in June, 2004. "The Fed is willing to tolerate higher inflation. It's very positive for gold." said Stephen Leeb, president of New York-based Leeb Capital Management. Gold futures rose $22.30 (U.S.) an ounce last week on the Comex in New York.
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