Sinai Says Fed's Sept. 21 Statement Means `Gotta Buy Gold'
The Federal Reserve’s statement yesterday that inflation is below levels consistent with the central bank’s mandate for price stability means it’s time to buy gold, said Allen Sinai, chief global economist at Decision Economics Inc. in New York.
“That’s code for we don’t want to go the way of Japan so we’re going to print money,” Sinai said in a radio interview today on “Bloomberg Surveillance” with Tom Keene. “You gotta buy gold when those two central banks are doing what they’re doing.”
Gold for December delivery was 1.6 percent higher at $1,294.2 an ounce at 8:11 a.m. on the Comex in New York, after touching an all-time high $1,296.50. Bullion for immediate- delivery rose 0.4 percent to $1,292.60 an ounce in London, after earlier today rising to a record $1,295.
The Fed’s Open Market Committee said yesterday it was “prepared to provide additional accommodation if needed” to support the recovery and boost inflation. Gold, which often moves counter to the dollar, has advanced 17 percent this year and is heading for its tenth consecutive annual gain.
Sinai said he forecasts a $1,500 price for gold. “Inflation adjusted it’s still cheap as odd as it sounds,” he said.
To contact the reporters on this story: Joshua Zumbrun in Washington at jzumbrun@bloomberg.net; Tom Keene in New York at tkeene@bloomberg.net
To contact the editors responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net;
Decision Economics Inc. Chief Global Economist Allen Sinai
Andrew Harrer/Bloomberg
Chief global economist at Decision Economics Inc. Allen Sinai said, “You gotta buy gold when those two central banks are doing what they’re doing.”.
Chief global economist at Decision Economics Inc. Allen Sinai said, “You gotta buy gold when those two central banks are doing what they’re doing.”. Photographer: Andrew Harrer/Bloomberg
Sept. 22 (Bloomberg) -- Stephen Roach, chairman of Morgan Stanley Asia, talks about the outlook for the U.S. economy and Federal Reserve monetary policy. Roach also discusses U.S. stance on China's currency policy, and Lawrence Summers's departure from his job as director of the president’s National Economic Council. He talks from New York with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Sinai Says Fed’s Sept. 21 Statement Means ‘Gotta Buy Gold’
Adrian Moser/Bloomberg
Gold, which often moves counter to the dollar, has advanced 17 percent this year and is heading for its tenth consecutive annual gain.
Gold, which often moves counter to the dollar, has advanced 17 percent this year and is heading for its tenth consecutive annual gain. Photographer: Adrian Moser/Bloomberg
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