Al Capital

Citigroup Sees Gold Reaching $2000

When currency was backed by gold, the response of trading imbalances or monetary policy was easier to predict. Now the "gold inflation play" is more opaque. Certainly if enough money chases gold, then the price of gold will rise. But the fundamental coupling between the economy and any commodity, including gold, is nearly opaque given global deflation that is expected to rage through global economies like a wildfire prior to an inflation phase.