Bloomberg News

Gold Prices to Be Linked to U.S. Deficit Cuts, JPMorgan Says

November 15, 2011

Nov. 15 (Bloomberg) -- Gold prices will be influenced by the ability of U.S. lawmakers to reduce the federal budget deficit, according to Colin P. Fenton, the global head of commodities research and strategy at JPMorgan Chase & Co.

“The market is discounting a cut of $2 trillion, so if it’s less than $1.5 trillion, we will see gold prices surge and rise higher than $2,500,” Fenton said today at a conference in New York. Gold traded today at $1,783.40 an ounce on the Comex in New York, down from a record $1,923.70 reached on Sept. 6.

--Editors: Steve Stroth, Patrick McKiernan

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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