Intensifying demand from Middle Eastern, Japanese and Chinese investors is likely to push gold futures beyond record prices set earlier this month as central banks will complement circumstances by fomenting hyper-inflation, the large fund's manager said.
Bloomberg reports a sharply increasing demand for gold from China, the earthquake and ensuing tsunami on March 11 in Japan, and anti-government protests in many North African and Middle East nations since January all are contributing factors that will help gold surpass the $1,444.95 record it set on March 7.
"The real driver for gold is the ocean of new monetary reserves being created by irresponsible central banks around the world," David Crichton-Watt, Kuala Lumpur-based manager of a $140 million fund at Phoenix Gold Fund, told the news service. "Hyper inflation is a very likely outcome, so gold can go to any number of dollars."
Shortly prior to 8:30 a.m. on Wednesday, gold futures gained 0.39 percent, a $5.60 increase to $1,433.20 per troy ounce.
"Western governments and Japan's government are essentially bankrupt and have no intention of ever reducing their deficits or indebtedness," Crichton-Watt said. "Once confidence goes, there will be a real panic."
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