Gold as a traditional inflation hedge tool

The data show that U.S. initial jobless claims last week, a significant increase in the U.S. mid-Atlantic manufacturing activity weakened, so the Fed to introduce more economic stimulus measures to help boost investment in gold charm.
Gold as a traditional inflation hedge tool has been dropped from earlier this year level, the Fed did not introduce a more proactive approach to stimulate the economy; Fed Chairman Ben Bernanke's speech last week, again, no hint of the upcoming new round of asset purchase program.
The analyst said: "If we expect the U.S. will have more liberal policies, I expect gold buying promote, quickly soared to $ 1,800 this year highs."
Kiro, vice president of RBC Wealth Management, said that gold still have received more than $ 1 600 per ounce, which is more to improve the technical scenarios.
The analysts said that corn futures prices to a record high also helped push up gold, because corn prices are regarded as inflation.
Last Friday, the New York gold futures to get rid of morning weakness modestly higher New York gold futures for August delivery rose $ 2.40, or 0.2 percent, to close at $ 1,582.80 oz.
But on Thursday, Friday of gold modestly high, but not enough to erase the whole week decline, gold fell 0.6 percent the week.

$ Index is the second consecutive day to rise, analysts said David Lennox, the dollar index continued Young to become the main cause of the price of gold under pressure, the investor was not seeking a safe haven like gold, but to determine the value of the assets bought by the solid support, will not easily fall.

This week, Greece has once again become the focus of the debt crisis in Europe, because creditors will evaluate Greece deviate from the relief how far the target, increased the doubts of Greece out of the euro.

German Vice Chancellor Philipp Roesier said that Greece can not meet the relevant conditions, will not get more money. Roesler said, doubt very much they can save Greece, Greece out of the euro are no longer people feel afraid.

Song Guoqing, member of China's monetary policy committee forecast that China's third-quarter gross domestic product (GDP) annual growth rate may slow to 7.4 percent, echoed Premier Wen Jiabao said earlier that the economic difficulties may persist for some time warning.