Gold News

Bearish medium-term dollar view 'should boost Gold Buying'

Mitsubishi Corporation analyst Tom Kendall believes that the medium-term outlook for Gold Prices is positive because of sustained weakness in the dollar, the Wall Street Journal reports.

The yellow metal broke $1,200 per ounce for the first time today (December 1st) as fears over Dubai World's debt subsided and the Bank of Japan announced that it is set to ease monetary policy.

Mr. Kendall explained that while these two developments were positive for gold in the short term, the ongoing woes of the greenback will prove to be most beneficial factor in the coming months.

"It's probably a combination of what's happening in Japan, and the Dubai World situation seems to have calmed down a little bit," he told the news provider.

"There is still uncertainty about whether there is the political will to tackle the deficit in the US and people are rightly bearish on the dollar on a medium-term view."

Meanwhile, Walter de Wet, an analyst at Standard Bank, which is the largest bank in Africa, has also sounded a positive note for anyone with a Gold Investment.

Speaking to Bloomberg last week, he predicted that the current strong levels of gold buying will extend to the beginning of next year at the very least.

"Buying in the physical market is still comfortably outstripping scrap selling, which we believe will continue for the rest of the year," he told the news provider.

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