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Commentary
BUY: DB GOLD DBL LG ETN (DGP) Rating: 1
Start Price: $17.39
Points: +106.02
Created: 01/20/2009
Gold will rise as the US dollar weakens in the months ahead.

1 Comment(s):

Author InvestmentMAGE     Date 2009-02-06 09:24:11
Investment bank Goldman Sachs raised its forecast for the price of gold to reach $1,000 an ounce in the next three months from its previous forecast of $700 due to rising investor demand for safe haven assets.
"The gold price rally has been driven by surging demand for gold in all forms: physical gold, exchange-traded funds (ETFs), and futures contracts as investors seek 'a safe store of value' amid the financial distress and inflation risks," it said in a report.
It also noted that a strong relationship betwween the price of gold in U.S. dollars and the exchange rate of the dollar against other currencies has begun to break down. Gold was trading at $903.15 an ounce by 0038 GMT, down $1.70 from New York's notional close.
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