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INTL FCStone Senior Commodity Consultant Edward Meir on the factors that could drive gold prices even higher.
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Rising today on hopes of more easing from the Federal Reserve just days before chairman Ben Bernanke is scheduled to speak at yes the well -- Jackson Hole Wyoming fed symposium good.
You'll fly fishing -- of this next analysts as major price changes could be ahead depending on the Fed's next move Edward -- is the senior commodities consultant.
Four I NT LFC -- he joins us now.
Good to see -- so first -- -- we should mention there there's very light volume it's.
This is not on par -- -- what happened a year ago when there was this huge massive gold rush correct.
Yes I would agree without correct it's we're not seeing got sort of all the cylinders firing in gold there's.
You know they investment demand is still weak jewelry demand is weak so this is kind of very.
You know it's still a significant move but it's not it's not broad based.
Why did it happen at worst sitting here surprising that it was because people believe that the Fed or any Central Bank.
Has no choice but to pilot in higher in deeper and that's what -- -- but it and the dollar ticket weaker but.
I don't Edward and this is quite the dramatic move is there something we're missing here.
Yeah -- you know if you look at it the timing was was just about right.
The Fed minutes came out yesterday.
Which -- -- positive in terms have been easing stands and then com currently you have the European seriously.
Contemplating.
Loosening some of these austerity moves perhaps buying more sovereign bonds and then moving sort of he -- you go to China.
The government is saddled with.
You know a slowing economy more more statistics of that effect came out today and there is talk -- -- lowering reserve requirements lowering interest rates.
And kind of offering incentives.
On the consumer side to.
To kick start demand there as well -- you're seeing kind of tri polar.
Number of regions all moving towards easing but I'm -- I think the gold bugs have picked up on that.
You know why I would -- I were talking about this wondered what it was that was really moving -- weather was what happened with the Fed notes which of course there's a little pull backs I -- today it is it is soon we saw the minutes.
That they were gonna do another thing of money -- another round of money -- Now little pullback from that wasn't China it wasn't this story of gold -- really more about China than it was about the Fed.
-- it's it's hard to say you know.
The general point is that all of these central banks are are are moving -- easier money so that is.
Sort of music to the -- of of of the gold bugs now they need to you.
We need to see.
No economic sort of calamities occur you know as long as the stimulus is coming in.
In order went -- causing much commotion I think gold will go up.
Already know if it's it's sort of a cat is -- -- please make -- -- you could -- -- setback so it's it's kind of a balancing act.
We saw silver -- about 3% which as far as percentages are concerned a bigger than what we saw with -- today but so for well off its highs of the session.
Let's not miss out are there any other metals out there that you feel can benefit from potential monetary loosening.
I think gold there's probably that the leader right now platinum has been kind of platinum and silver are both.
-- -- poor cousins who gold but.
They each.
Aren't going to be capable of leading the rally because gold -- Much more well represented across the globe it has more of that mass appeal in terms of being an alternative hedge.
Against paper currencies how much gold do you have Edward.
I have been -- ATF and I sold that unfortunate.
-- -- Susie how much I know.
Well that's the Paulson from the Soros is of the world they're diving and all right thanks everybody -- -- -- for.
