China Mineral Company Watches as Gold’s Prices Continue to Break Records

Gold rallied to its third consecutive record high on Thursday as the dollar continues to deteriorate and investors speak concerns over inflation. Analysts expect the streak to continue, Tad Brooks of the China Mineral Company reports, predicting prices could exceed $1,100 an ounce by the year’s end.

The increasing weakness of the dollar is driving the higher price of gold, as is increasing inflation in the United States. The dollar was down 0.6% against the euro and 0.7% against the British pound. The dollar index, a measure of the dollar against a basket of other currencies, has declined 10% since March. Many analysts predict this trend to continue as the nation’s budget deficit increases and investors turn toward higher yielding currencies. Increasing gold prices are also supported by concerns that government efforts to ignite the economy will stimulate inflation. Precious metals are seen as a hedge against rising prices because they are a better store of value better than other asset types.

Gold is poised to continue its bull run as the rock-bottom interest rates and U.S. fiscal policies encourage investor demand. Rising demand will likely be met by Chinese companies like the China Mineral Company, who are particularly well positioned in the market.

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