Gold Breaks $1,600/Ounce

Gold is up for the 11th day in a row, and very likely, we’re heading for our 11th-straight yearly gain. Gold just broke $1,600 per ounce in London. Silver is up even more this year.

I think the latest rally in gold is due to the realization that the Federal Reserve won’t be raising interest rates any time soon. In fact, with the election coming up in 15 months, we may not see an interest rate increase until 2013, at the earliest.

Immediate-delivery gold gained as much as $9.85, or 0.6 percent, to $1,603.40 an ounce and traded at $1,602.05 by 1:04 p.m. in London. Prices are up for an 11th day, the longest streak of gains since July 1980. Gold for August delivery was 0.8 percent higher at $1,603 an ounce on the Comex in New York after reaching a record $1,603.80.

Posted by on July 18th, 2011 at 8:57 am


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