How high can gold prices go?

Ted Scott, director, UK strategy, F&C Historically one of the main attractions of gold has been a hedge against existing or expected inflation. Gold soared last year partly in response to rising inflationary expectations following the central banks action. However, bond yields have plummeted once more and reignited fears of deflation and a double dip recession. Despite more recent market concerns about the prospect of deflation than inflation, gold has remained in demand and the price attained successive new highs culminating in breaking through $1400 per ounce this week. The f...