Gold has had a solid rise over the past couple of week and is up over US$932 at the moment.
This is due to weaknesses in the US dollar and record oil prices.
As Peter Spina, an analyst at GoldSeek.com, puts it: "Capital seeking shelter from monetary debasement will continue to deviate to preservation assets such as gold and silver."
This article also notes that rising fears of inflation have driven up the price.
As we’ve said a number of times on this blog, gold acts as an inflation hedge. There is a pretty lively debate about whether gold or oil is a better inflation hedge. This author examines the arguments and comes out in favour of holding each in your portfolio. No prizes for guessing which side I come down on.
In other gold news. Check this story out. Scientists at North Carolina State University have cut off the ends of a failed HIV drug and stuck the resulting molecules onto gold nanoparticles which then stopped HIV from infecting lab-cultured white blood cells. Interesting.
