Los Angeles – The price of Gold rose to $1,315.80 an ounce, a 1.6 percent weekly gain, on Friday as silver prices rose to $22.05 an ounce, nearly 3 percent up on the week, after hitting a 30 year high at $22.15 an ounce.
The week began with a record high for the price of Gold at $1,300 on Monday and a thirty year high of $21.61 for silver.
The London Bullion Market Association meeting in Berlin showed that delegates were bullish on gold bullion prices early on Monday, when they delivered an average forecast of $1,406 an ounce for this time next year.
By the end of the meeting the forecasts rose to an average $1,450 an ounce. "Gold is the ultimate financial insurance," said Teachers Retirement System of Texas manager Shayne McGuire, "and pension funds are only just beginning to talk about this."
Jeffrey Nichols, managing director of American Precious Metals Advisors, sees gold hitting $1,500 in the first half of 2011, or possibly even before the end of this year.
U.S. House of Representatives voted 348-79 in approving the China trade retaliation measure that will allow U.S. companies to petition for duties on imports from China to compensate for the effect of the artificially weak Yuan.
The House vote brings to light the growing trade tensions between the world’s two biggest economies. After more than a decade of legislative threats by U.S. lawmakers, it is the strongest trade measure targeting China to make it through a body of Congress.
“We firmly oppose the U.S. Congress approving such bills,” Foreign Ministry spokeswoman Jiang Yu told reporters after the vote.
“We urge the U.S. congressmen to be clearly aware of the importance of China-U.S. trade and economic relations, resist protectionism so as to refrain from any damage to the interests of both peoples and people around the world.”
The Fed's message delivered last week at its regular FOMC policy meeting that it is prepared to act should the economy weaken has helped gold's advance.
U.S. Treasury Secretary Timothy Geithner said on Thursday that China knows it is in its own best interest to make progress in revaluing the yuan.
Brazilian Finance Minister Guido Mantega complained earlier in the week that the world was in an "international currency war" with governments attempting to boost their exports by manipulating foreign exchange rates.
Geithner said that he did not see world economies headed for "currency wars."
Jim Flaherty, Canadian Finance Minister, suggested that, "Currency issues are major issues in the world. They distort trading relationships," he said. "We believe that currencies, including the Chinese currency, need to be more flexible so that our trading relationships are more rational."
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