Gold gains on weaker dollar, China inflation

[midwesterner (banned)]

;D THEM APPLES

LONDON, Feb 15 (Reuters) - Gold was set for its largest
one-day rise in a week, aided by a weaker dollar and Chinese
inflation data that soothed some concern over the prospect of
rapid rate rises in the world's second-largest bullion consumer. Rising inflation particularly in emerging markets could
encourage demand for gold, which can help investors insulate
their portfolios against growing price pressures. Spot gold XAU= rose 0.8 percent to $1,372.10 an ounce by
1213 GMT. The price has risen by about 5 percent since hitting
three-month lows in late January. U.S. gold futures GCJ1 were
up 0.6 percent at $1,373.60 an ounce. "What we're likely to see this year in terms of investment
drivers for gold being the degree of rotation in Europe and the
U.S. and the more developed markets that use ETFs as a physical
vehicle ... being offset by sustained physical investment in
Asia and concern over inflation is mounting," said RBS analyst
Daniel Major. "There is going to be that driver for sustained coin and bar
investment in 2011 that is likely to support the market."

www.reuters.com/article/2011/02/15/markets-precious-idUSLDE71E0ZP20110215

[

size=3]Inflation Hits Nearly 5 Percent in China, With Food Costs Soaring

[/size]

BEIJING — Consumer prices in China rose 4.9 percent in January when compared with the same month a year earlier, the government reported Tuesday, as inflation continued to bedevil the economy.

The rise in prices was less than expected, but some economists said the data was difficult to judge because the statistics bureau recalculated the index to give less weight to food costs and more weight to housing costs. Those shifts and other changes designed to catch up with consumption patterns made it impossible to directly compare the January data to earlier months.

Nonetheless, some analysts said the data suggests that inflation is spreading. [/quote]

www.nytimes.com/2011/02/15/business/global/15chinaecon.html?_r=1&src=mv

Such an amazing recovery isn't it folks? Why now that inflation is hitting China, those oh so precious outsourced goods you all loved so dearly at Walmart and all other stores will not start to cost you more and more.

Somehow I think the same people that cheered on the profits from outsource our wealth to China, are the same ones cheering on the QE, inflationary stock market gains based on bs statistics.

[Aman A.K.A. Ahamburger]

LOL!! Mid last sept when you and your friends were calling for a double dip, leading to a depression and deflation. Some, including myself, were saying that rising wages and lack of food was basically guaranteeing an inflationary cycle, I was laughed at for wishing on a star. For hoping, upon hope, ect.. Now your acting like this is all part of your... "world"...

Classic.