2: What explains the rush for gold?
Gold prices have hit a six-year high, and there could be much more room for them to rise. Veteran investor Mark Mobius gave a blanket endorsement to buying gold because of the prospect of a rise in money supply as global central banks ease monetary policy to support growth. With fears of a recession looming large, investors are getting drawn by the safe-haven appeal of gold. However, could gold’s rise also be a signal of an end to the US's strong dollar policy? The views of Mobius may reflect the deep anxieties of such a shift in the world’s financial architecture.
