Comments: Dropping interest rates make way for deflation followed by rising interest rates (propping the dollar UP) thus creating HYPERINFLATION. GOLD is now beginning to take off. So the cycle continues. When HYPERINFLATION happens, the dollar nears zero, GOLD will be hitting $5000 and you will be running around with a wheel barrow filled with useless bills looking for bread.
NEW YORK (MarketWatch) -- Gold futures rallied more than 2% Monday to their highest level in two months as a falling U.S. dollar increased the metal's appeal as an alternative investment and as surging crude-oil prices raised gold's value as a hedge against rising prices.
Gold for February delivery jumped $22.50, or 2.7%, to $843 an ounce on the Comex division of the New York Mercantile Exchange, the highest since Oct. 15.
Monday's gain in gold followed its 9% advance in the past week.
The front-month December contract, which expires on Dec. 29, rose 2.3% to $838.10 an ounce. Open interest, or the number of outstanding contracts of the December contract, stood at 811 as of Friday, or 81,100 ounces, according to Comex data.
Gold inventories held by the Comex for futures delivery stood at 2,846,513 ounces as of Friday, down 90,915 ounces from a day ago, according to the latest data from the exchange.
"A weaker dollar coupled with firmer energy prices ahead of the OPEC meeting" boosted gold values, said Edward Meir, a metals analyst at MF Global.
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