Gold Prices Set for `Difficult Period,' Evolution's Klein SaysBy and
Gold prices, which have declined about 10 percent this year, are in for a “difficult period” in dollar terms, according to Evolution Mining Ltd., Australia’s second-biggest producer.
“If you show me inflation, I’ll show you a higher gold price,” Jake Klein, Evolution’s executive chairman, said Wednesday at the Bloomberg Summit in Sydney. “There is no sign of that in the U.S. at the moment, and therefore you are probably in for a difficult period in U.S. dollar terms.”
Gold traded near the lowest in more than five years Wednesday amid bets bets that the Federal Reserve will raise interest rates as soon as next month. The metal tumbled to $1,065.60 on Tuesday, the lowest since February 2010. Gold doesn’t offer interest or pay dividends, unlike competing assets.
Federal Reserve officials will release minutes from their Oct. 27-28 meeting on Wednesday at which they signaled that they would be open to a move in December if labor market conditions continued to improve.
Bullion for immediate delivery traded at $1,070 an ounce at 8:09 a.m. in Singapore from $1,070.30 a day earlier, when prices sank 1.2 percent, according to Bloomberg generic pricing.
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