Monday, 21 March 2011

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U.S. Military Incursion Drives Gold Higher

  • Monday, 21 March 2011
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  • Gold rose $11.00 to $1,430 per ounce Monday morning as investors weighed the U.S. military incursion in Libya as well as the deflationary impact of the earthquake in Japan and its aftermath.  Silver also moved higher – rising $0.84 to $36.10 per ounce – while crude oil climbed back above $103 per barrel.  S&P 500 stock futures rose 15.80 to 1,290.

    The presence of negative real interest rates across much of the globe is evidence of the fact that monetary policy is too easy.  Stubbornly high commodity prices are a symptom of easy money and the macro-economic backdrop will remain conducive to higher gold prices as long as central bankers perceive deflation as its number one enemy.

    (Source: http://www.goldalert.com/2011/03/u-s-military-incursion-drives-gold-higher/)

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