A SLOWING economic market and a weakening Dollar may give a boost to the Gold Price, according to Korean analyst and advisor.
"The dollar is very weak," said Chris Yoo, manager of the global derivatives team at Samsung Futures Inc, a major risk management company. He thinks "The dollar will affect bullion for the time being."
The economic markets of China and the US are showing signs of slowing down. The Federal Reserve on July 14 cut its forecast for the U.S. economy’s expansion, and China said yesterday that the pace of growth dropped in the second quarter.
The likely ensuing fall of the Dollar would push up the Gold Price. There would be a scare similar to that of the European debt crisis, causing a surge in people looking to Buy Gold, and in turn advance the Gold Price.
This is also echoed by a report by the large Shinhan BNP Paribas Asset Management, who say "demand for precious metals, including gold, will likely grow." They reported that demand for gold is expected to rise in the long-term.
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