Gold soared near $1,380 an ounce on Thursday as the dollar plunged, after the Federal Reserve said it would pump $600 billion into financial markets. Jason Toussaint, managing director at World Gold Council, shared his outlook.
“We know that gold has an inverse relationship to the dollar so there’s no surprise that it’s going up today,” Toussaint told CNBC. “And what will continue that going forward is uncertainty about future inflation.”
He noted that people are looking at gold as a strategic asset class for the future.
“People are looking at gold as a strategic portfolio asset and how gold interacts and hedges portfolio level risk,” Toussaint said. “We saw in 2008—a huge selloff in most asset classes, gold held its value. It could go on like that for the future.”
Scorecard—What He Said:
- Toussaint's Previous Appearance on CNBC (Jul. 29, 2010)
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CNBC Data Pages:
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No immediate information was available for Toussaint or his firm.