Gold News

Analyst predicts 'fresh' Gold Buying

Richcomm Global Services analyst Pradeep Unni claimed yesterday (June 28th) that the interest rate freeze in the US could see more investors Buy Gold.

The Federal Reserve announced last week that it was maintaining the base rate, despite a number of market commentators forecasting a drop of 0.5 percent or one percent.

Reacting to the news, Mr. Unni explained that the dollar is likely to experience further weakness in the future, which will create "fresh momentum" for gold, which moves in the opposite direction.

He told Bloomberg: "[The] Fed's decision to keep interest rates low for an extended period may give enough fundamental support to keep the metal firm."

Those comments come after Emma Plumpton, manager of the Grampian branch of UK stockbroker Redmayne-Bentley, also sounded a positive note for Gold Investment last week.

She explained that the yellow metal is finding favor as central governments are attempting to "basically inflate their way out of debt" in response to the global financial crisis.

"Investing in gold is no longer the preserve of the wealthy," she told the Press and Journal.

"The sheer size of the expected government deficits in the UK and America resulting from the stimulus measures look unsustainable."

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