"Man who has never voted Labour and doesn't like it named as Labour donor" (claim)

Note: Now what did the financial genius in No 10 sell a large part of
our Gold Reserves for.....around $200 an ounce from memory. rH

Gold hits $1,000 for first time

The price of gold reached a record, trading at $1,000 an ounce for the
first time, pushed higher by a weak US dollar and fears about the US
economy.

Concerns about a possible US recession are seeing investors buy up
commodities such as gold as an alternative to company shares and the US
dollar.

Since the beginning of the year the value of gold has increased by about
20%, after it rose 32% in 2007.

Gold will stay high as long as dollar and growth fears remain, analysts
said.

"Every bit of bad US economic data boosts gold in two ways," said Fortis
Bank.

"First because it reinforces the return of its role as a safe-haven
asset, and second because the dollar falls on expectations of further
Federal Reserve rate cuts."

Gold is measured and sold in troy ounces. One troy ounce equals 31.1035
grams or 480 grains. One troy ounce is equal to 1.09711 avoirdupois
ounce - those widely used to measure weights in the US and UK.

Short term fix?

The dollar fell further on Wednesday against key currencies, including
the euro and Japanese yen.

At one point, it was worth less than 100 yen for the first time since
1995, while it plumbed new depths against the euro at $1.562.

Analysts are predicting that it could fall further as more details
emerge of the losses suffered by banks and hedge funds due to
investments centred on the troubled US housing market.

Already many companies have unveiled billions of dollars of losses which
has caused credit markets to freeze and has created an environment where
there is less money available for consumers and businesses to borrow.

At the same time, there are increasing signs that the US is on the brink
of recession.

Official data out on Wednesday showed disappointing retail sales in
February.

This has added to the recent drum beat of bad news, including a
shrinking of the service sector in January and February, and an
unemployment rate that is at its the highest level for five years.

'Cut and inflate'

Despite aggressive interest rate cuts and White House measures to
stimulate consumer spending, it is expected that US rates - currently at
3% - will have to come down further.

Analysts said this will weaken the dollar further and accelerate
inflation.

"The Federal Reserve is going to cut and inflate our way out of this
credit mess and the implications are going to be higher and sustained
inflation," said Ichael Darda, of MKM Partners.

"That's been signalled by not just gold but by virtually every commodity
and the dollar."

The oil price surged to a fresh high above $110 a barrel earlier, while
agricultural commodities, including cocoa and coffee, also rose.

Story from BBC NEWS:
BBC NEWS | Business | Gold hits $1,000 for first time

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