Daniels Trading Senior Broker Kurt Pfafflin was quoted in The Wall Street Journal/WSJ.com article titled “Comex Gold Eases to End Week Nearly Flat.” The article recaps the price performance of the Gold and Silver futures markets denominated in various currencies such as the US Dollar, Euro, and Swiss Franc. The US Federal Reserve’s recently announced “open-ended” Quantitative Easing program, concerns about a weaker Euro currency, and expectations involving a Spanish credit rating downgrade/ ECB bailout programs fueled record-setting all-time highs in the Euro and Swiss Franc as some investors believe gold and silver to be safe havens that may protect wealth against inflation that could follow monetary easing.
We’re going to see competitive currency devaluations continuing,” describing potential effects of easing measures being implemented all over the globe by central banks (US Federal Reserve, European Central Bank, and Bank of Japan). “The prime beneficiaries are going to continue to be the hard assets, the precious metals,” said Mr. Pfafflin.
While Gold priced in Euro and Swiss Francs recently hit record highs, a new high in US Dollar terms has yet to be attained. Mr. Pfafflin said, “We’re going to knock on that door again in the dollar.
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