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I see gold as a currency - Jim Lennon, Macquarie Bank
In an interview on Radio 2000 @ 18:20 on Wednesday, 16 August 2006
[miningmx.com] -- THE head of commodities research at Macquarie Bank, London-based Jim Lennon, is bullish about the prospects of bullion in the forseeable future, despite not viewing gold as a precious metal.
"I see gold more as a currency, more as a hedge against uncertainty in the world and against the weaker US dollar," Lennon said, adding that the yellow metal also acts as a hedge against inflation.
"I'm pretty bullish on gold," Lennon said, as he believes that the greenback will continue to weaken.
Lennon was speaking on the Moneyweb Power Hour, broadcast on Radio 2000.
Speaking on the broader commodity market, Lennon said that he expects a period of very strong commodity prices over the next ten to twenty years, as the demand out of China is so great.
"We will see a slowdown in demand out of the US however, which will lead to a breather in
commodity prices," Lennon cautioned.
Gold futures rose in the US on Wednesday as softer-than-expected consumer inflation data dulled expectations that the Federal Reserve will raise interest rates again and put pressure on the US dollar.
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