By David Berman
There was nothing standing in gold?s way on Tuesday afternoon, with bullion prices hitting a new record high in nominal terms. Gold touched $1,452 an ounce, up about $19, stretching its gains to 10.5 per cent since it began to recover from an early year dip in late January.
This raises the question why -- which is rarely an easy question to answer when you're dealing with gold.
You certainly can?t blame recent comments from Federal Reserve chairman Ben Bernanke. In a speech on Monday, he downplayed the threat of inflation, noting that gains in various commodity prices would not likely translate into anything more than a ?transitory? increase in inflation, with food and energy prices in particular likely stabilizing eventually. He added that if he?s wrong, the Fed would respond, presumably with higher interest rates.
So if inflation isn?t a problem, what is
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