I have observed that whenever oil prices rise , the concern over increasing inflation rate arises and it is then that gold is used as a hedging tool to curb any risks invloved . This trend has become a regular feature lately, even yesterday when oil rose, gold was used as a hedge to counter rising consumer prices. However the rise in oil prices is supporting gold prices.I feel gold will rise even more and go over $602.70 an ounce making it an inflation hedge.
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