By Joyce Koh Nov. 18 (Bloomberg) -- Gold, which climbed to a record today, will outperform U.S. stocks as investors turn to the bullion on further government stimulus spending, said Marc Faber, publisher of the Gloom, Boom & Doom report. The support level for the commodity will now be at $1,000, which was the precious metal’s resistance level previously, Faber said in a Bloomberg Television interview in Singapore today. Immediate-delivery bullion gained as much as $7.10, or 0.6 percent, to $1,148.40 an ounce in London and was at $1,148.20 by 11:25 a.m. local time. “What will continue to happen is that the S&P 500 and the Dow Jones will go down relative to gold,” Faber said. “I think gold will go up more” from its support level. The outlook for gold sparked a debate between economist Nouriel Roubini and Jim Rogers earlier this month. Rogers, the investor who predicted the start of the commodities rally in 1999, said Roubini is wrong about the threat of bubbles in gold and emerging-market stocks. Roubini, who predicted the global economic crisis, said a forecast by the investor that gold will double to at least $2,000 an ounce is “utter nonsense.” “Will it go $2,000, $200,000 or $2 trillion? I don’t know,” Faber said. “But if you have money printing in the world, then the price will over time rise. It will go up more for things that you just can’t increase the supply, and the supply of precious metals is very limited.” ‘Good Asset’ Gold is set for a ninth annual gain as central banks, pension funds and individual buyers seek to protect themselves from potential currency debasement and inflation. Policy makers worldwide have set interest rates near zero and spent $2 trillion to pull the world economy out of the worst recession since World War II. “With the crisis, people are realizing gold is a good asset to have,” Pierre Gay, chief executive officer at Newedge Financial Asia-Pacific, said in a Bloomberg Television interview today. “For me, the potential for gold is pretty high.” Faber expects the U.S. government to increase its stimulus spending should the Standard & Poor’s 500 Index fall toward 900. The U.S. budget deficit under President Barack Obama’s administration reached a record $1.4 trillion in the fiscal year that ended Sept. 30. Debt amounted to 9.9 percent of the nation’s economy, triple the size of the 2008 shortfall. “I don’t think the S&P will drop below 800 or 900, and eventually will go higher in nominal terms, but not necessary in real terms,” he said, predicting a correction in the measure in the “near term.” The index rose 0.1 percent to 1,110.32 yesterday. The investor predicted on March 9 in a Bloomberg interview that equities would rally because of government stimulus measures. The S&P 500 Index dropped to a 12-year low that day and has since climbed 64 percent as a four-quarter contraction in the world’s largest economy ended, while the MSCI World Index rallied 71 percent. To contact the reporter on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net

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