Gold has been frequently moving against the dollar lately, which means that it has been going up as economic prospects brighten, and down as they get worse. Thus some observers feel gold has become less of a hedge. Will gold forsake the goldbugs?
Marketwatch: “Gold is like an unfaithful wife. One day it follows the dollar, one day it follows oil, one day it follows stocks,” said Leonard Kaplan, president of Prospector Asset Management in Evanston, Ill.
This isn’t your father’s crisis. It could be deflation.
Bloomberg: “Once equities rebound and margins are returned, this new money is then in place to buy gold again,” said Bernard Sin, the head of currency and metals trading at MKS Finance SA in Geneva.
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