Gold prices are expected to break 1000 dollar asset bubbles and inflation in the next 6 months

As the global economy continues to slide, leading countries to bail out through expansionary fiscal or monetary policies, in which the US is already the world's largest debtor, further debt issuance and widening deficits will only worsen, and too much of the dollar will only lead to two results: inflation and the emergence of a dollar trust crisis.　　And all this will lead to a stronger dollar substitution gold, we continue to bullish on the future gold trend, gold in the next 6 months is expected to reach 1100 U.S. dollars/oz. The world's currencies fear a crisis of confidence. Governments around the world are scrambling to stimulate the economy by expanding fiscal and loose monetary policy, up to $10 trillion trillion, accounting for 15% of world GDP. Since 2002, with the War on terror and the economic need to stimulate the brink of recession, the rate of US currency issuance has reached an astonishing 15% per cent in the near-lowest post-war interest rate. The biggest risk now is that the market's loss of confidence in government solvency could lead to a forced withdrawal of stimulus.　　Confidence in the currency crisis, gold will be out of the maverick market, highlighting the monetary attributes of gold. The crisis will lead to higher gold prices. In 2008, Congress had to increase federal debt to $11.3 trillion trillion, more than 70% of U.S. GDP, over 45% of the Great Depression, through the Bush administration bailout plan. Since the start of the subprime crisis, the Fed first cut interest rates to deal with the crisis, in a very short time the federal funds rate from 5.25% to 0.25%, there is no further room for interest rate cuts. To further bolster the market and the real economy, the Fed has to follow a bubble-bursting Japan to implement what it calls quantitative easing.　　The Fed's balance sheet could swell to $3 trillion trillion in 2009, an excellent trigger for hyper-inflation. The U.S. bond market has the following effect on gold: First, the size of US Treasuries is too large, and some creditor countries are actively promoting the settlement of bilateral currencies with different nations, which will weaken the status of the dollar and strengthen the gold currency attribute. Second, the US junk bond market is likely to collapse, the U.S. junk debt default rate is soaring, will trigger a bigger crisis than subprime, for gold, the second market panic is undoubtedly the best reason for the rally. Third, the Fed is unlikely to do business at a loss, and once the monetary multiplier effect begins to emerge, the "private-holding Super bank" recovers its "investment" when it is the outbreak of hyperinflation, from deflation to inflation, and possibly a V-shaped reversal.　　Gold may benefit again.　　Asset bubbles and inflated dollar inflation in the financial or commodity markets generated a bubble in the momentum of the MSCI World Index and the oil-led commodities in the rapid rise, as the inflation index of gold prices rising, gold investment demand, especially in the demand for physical gold. According to the World Gold Association (WGC) in the first quarter of 2009, the gold Demand Trend report, the total demand for gold in the first quarter of 2009 Rose 38% from the same period last year, to 1016 tons. Listed on the New York Stock Exchange SPDR Gold ETFs have reached 1130 tonnes, surpassing China's central bank's gold reserves, and the fund has only been issued for 5 years.　　The 2009 World Gold Association is expected to reach 2004 tonnes a year in 2009 due to the demand for wealth preservation.　　The more non-commercial net increase in the futures market also reflects the bullish outlook of institutional investors, and we expect this trend to continue. Based on the above analysis, we believe that in the next 6 months, gold is expected to reach $1100/oz or No. 0912-month contracts or 240.59 yuan/gram without a second financial crisis and no consideration of abrupt geopolitical factors, which is expected to reach $12 in the next 1280 months. ounces or No. 0912-shipment contracts or reach 279.96 yuan/gram.