Buying Gold is 'good hedge' against falling dollar
Prominent gold analyst David Thurtell claimed today (September 11th) that weakness in the US dollar is prompting investors to Buy Gold, Reuters reports.
Gold Prices have pushed past $1,010 per ounce - their highest level for 18 months - after falling back following their initial rise into four-figure territory earlier this week.
Now Mr. Thurtell from Citigroup, which has the world's largest financial services network, has explained that the struggling greenback - which has an inverse relationship with gold - is the reason behind the yellow metal's gains.
He told the news provider: "The dollar seems like it could be heading for $1.50 against the euro. There are bound to be people seeking currency hedges and gold's a good one."
Those comments come after James di Georgia, who produces the Gold and Energy Advisor, also predicted that gold prices will enjoy a strong performance in the long term.
Mr. Di Georgia, whose views often appear in leading publications such as the New York Times and US Today, explained that the metal could reach as high as $1,200 per ounce.
"When you have such a large part of US population convinced we're running to hell in a handbasket with federal spending, you're going to have a large part of the population buying and taking possession of gold out of fear of what's going on," he told cnbc.com.
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