Gold News

Big Money Buying Gold, Says Analyst

Big money investors are Buying Gold amid fears that measures to stimulate the US economy are fuelling inflation, according to a leading analyst.

Axel Merk, portfolio manager of the $600 million Merk Mutual Funds, believes investors are Buying Gold in response to the policies of US Federal Reserve chairman Ben Bernanke. Bernanke has stated he is committed to continuing a $600 billion quantitative easing program, which is scheduled to run until June.

"What it shows is that big money continues to believe gold will go higher...because Bernanke wants to grow at any cost," he said.

Other analysts echo this view.

"Investors continue to exhibit symptoms of flight to safety," wrote Shiyang Wang, a New York-based analyst at Barclays Capital, in a note to clients.

The Gold Price set a new record on Tuesday, rising above $1450 an ounce.

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