Gold trading high, Faber terms Obama's speech 'irrelevant'

Business

oi-Monika Nihalani

By Monika Nihalani

Published: Friday, September 9, 2011, 12:50 [IST]

Gold futures edges above Rs 28,000 per 10 grams in today's trade after Fed chairman Ben Bernanke failed to verbalize any promise of further Quantitative Easing.

Obama also delivered a speech over the joint congress session on Thursday, where he unveiled $447 billion package of tax cuts and infrastructure spending to revive job statistics which were locked in August.

But his speech failed to entice commodity investors, who preferred to seek safety in yellow metal.

Investment guru and the author of The Gloom, Boom and Doom report Marc Faber called Obama's speech "quite irrelevant" on a leading business news channel.

Faber is quite bullish about the trend of gold, he recommend investors to allocate money to gold as he don't expect any official announcement of Quantitative Easing.

International gold prices have again rallied $1900 an ounce as US central bank continue to boost money in the economy which has spurred bullion to a record.

According to Faber, gold is not the bubble. 'When you buy gold, it's an insurance against systematic failure and problems in the financial markets,' he said.

'I'd buy every month a little bit of gold,' Faber added.

At the Multi Commodity Exchange, gold for delivery in October opened at Rs 27,909 per 10 grams, then picked up in morning trade, touched an intraday high of Rs 28,247 per 10 grams and was trading in the range of Rs 28,161 – Rs 28,162 per 10 grams around 12:42 pm IST.

Similarly, the metal for April contract delivery opened at Rs 28,870 per 10 grams and was trading in the range of Rs 28,953 – Rs 28,994 per 10 grams.

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