Gold has earned a reputation as a safe haven due to its inverse correlation with the dollar. Hedge managers note that many people see a declining dollar as a solution to the ballooning US current account deficit. If the dollar falls until the deficit is balanced, gold still has some way to go.
Neil Hawkes, analyst at London independent research house Commodity Research Unit, says he expects the price of gold to rise until mid-2005, to about $500 per ounce. Around this time, he says, the dolla