Gold will ultimately hit US$1,300 on inflation hedging, says JPMorgan Chase|
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INTERNATIONAL. Jan Loeys, the global head of market strategy at JPMorgan Chase & Co said commodities are going to move higher as investors start to get concerned about inflation.
Speaking on Bloomberg Television from Hong Kong, Loeys said: “The global recession and the US recession probably is over this month, maybe next month. Commodities, materials in particular, are going to be benefiting right now as investors start to get a bit worried about future inflation.”
“Over the next year or so, we think we are going to be crossing US$1,000, probably go ultimately to US$1,200, US$1,300 just for inflation hedging and lack of supply,” Loeys said.
Clients “are very worried about inflation in two, three years time,” Loeys said in the interview. “The buying we are seeing now in commodities is really hedging, hedging off the potential risk that we will see a spike in inflation.”
Loeys said crude-oil prices may rise faster than gold in the next few months as energy demand picks up.
Gold for June delivery settled up US$2.90 at US$931.30 an ounce Friday on the COMEX division of the New York Mercantile Exchange.


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