Why the gold price is set to double

Veteran gold commentator Paul van Eeden believes that the price of base metals will be battered by a US slowdown. But the good news is that a US slump will see the price of gold soar...

The Federal Open Market Committee voted to keep US interest rates steady at their last meeting, citing concern for the economy in spite of persistently rising prices. Had the European Central Bank not elected to keep interest rates steady too, I suspect the dollar would have been lower against the euro Friday.

The dollar has held steady against the euro and the pound since mid-May, fell modestly against the Chinese renminbi and strengthened against the yen and the Swiss franc - pretty much a mixed bag. During this time the gold price in US dollars fell by $90 an ounce, or 12%.

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