High profile hedge fund manager David Einhorn (who famously hounded Lehman as the credit crisis unfolded) is on the wires touting gold. He’d rather hold gold than cash, since they both have no yield. Washington’s rescue policies may hurt the US balance sheet longer-term, Einhorn says. He is also buying options on US and Japanese interest rates, betting they will rise.
Gold is near session highs, trading around $1057, where it has been for a few hours. The buck is a shade stronger, at 1.4945 versus the eur, after stalling near 1.4970 resistance.
