The aroma is becoming tantalizing and its music sweeter to my...

The aroma is becoming tantalizing and its music sweeter to my ears by the day. When it is EKMs time this bull will run harder than an elephant in a china shop, imo, don't miss out and be part of the wreckage

LINK - http://www.theaustralian.com.au/business/markets/gold-price-jumps-to-record-high/story-e6frg91o-1225934648994

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Gold price jumps to record high
Matt Whittaker From: Dow Jones Newswires October 06, 2010 6:08AM Increase Text Size Decrease Text Size Print Email Share Add to Digg Add to del.icio.us Add to Facebook Add to Kwoff Add to Myspace Add to Newsvine What are these? GOLD settled above $US1340 for the first time as investors fled paper currencies in favour of the metal as a perceived store of value.

The gains came amid growing expectations the Federal Reserve will embark on another round of monetary easing as other central banks soften their policies, leading some to forecast currency devaluation and longer-term increases in consumer prices. Gold is often seen as holding its value more strongly than currencies or other assets during inflationary periods.

"Potential further expansion of the Fed's balance sheet through quantitative easing, global currency debasement fears, continued investor and central bank metal accumulation should continue to drive gold prices higher," Jefferies & Co said in a note to clients. Jefferies raised its price target for gold from $US1300 to $US1400 over the next 12 to 18 months.

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KEY COMMODITY PRICES: copper, oil, gold, silver, livestock and wheat

The most-actively traded gold contract, for December delivery, rose $US23.50, or 1.8 per cent, to settle at a record $US1340.30 a troy ounce on the Comex division of the New York Mercantile Exchange. It hit an intraday peak of $US1342.60, the highest-ever price for a most-active gold contract.

"It's the rush out of the paper currencies," said Bob Haberkorn, senior market strategist with Lind-Waldock in Chicago. Gold is "a store of wealth right now."

Investors have bid gold to a string of record highs in recent days as they've sought safe-haven investments amid concerns about the slow economic recovery around the globe. More recently, that anaemic growth has led to the expectations that the Federal Reserve will increase the money supply.

The latest comments from Fed chairman Ben Bernanke have pointed to the success of the bank's recent quantitative easing and suggested that more easing could help.

Such talk has boosted gold, which has been further helped as other central banks have been embarking on similar measures.

"The US dollar and other currencies (are) weakening to the point that the world (needs) to hedge the devaluation with gold," said George Gero, vice-president with RBC Capital Markets Global Futures in New York.

Yesterday, the Bank of Japan cut interest rates to zero and introduced more monetary easing. The Reserve Bank of Australia also signalled a more dovish approach to policy by leaving its interest rates unchanged.

That left the euro to strengthen against the US dollar as the euro zone was seen as less likely to pursue more quantitative easing.

The lower US dollar in turn further boosted US dollar-denominated gold by making it less expensive for buyers using other currencies, pumping up demand.

"Everything's responding to a lower dollar," said Charles Nedoss, senior market strategist with Olympus Futures. "It's just the inflation trade."

Further buying entered the gold market after the metal cleared resistance at $US1325 an ounce, said Ira Epstein, director of the Ira Epstein division of the Linn Group in Chicago.

"It's emboldening the bulls," he said. "The markets are attempting to fully price in Fed action sooner rather than later."

Other precious metals traded in New York also rose, with Comex December silver jumping 3.2 per cent, Nymex January platinum gaining 1.7 per cent and Nymex December palladium adding 3 per cent.