A prominent investment portal claimed today (June 30th) that there are a number of factors which are likely to keep Gold Prices strong in the coming months.
Kevin Grewal, editorial director of SmartStops.net, which specialises in exit strategies, explained that investors will continue to Buy Gold for two main reasons.
Writing on SeekingAlpha.com, he noted that the declining of the US dollar and growing fears over impending inflation are likely to sustain interest in the yellow metal.
He wrote: "Despite a drop off in prices, bullion still remains very attractive and continues to shine amongst investors, and for good reason."
Mr. Grewal also drew attention to China's attempts to increase its gold reserves and predicted that it will use its $1.95 trillion in foreign exchange reserves to purchase more bullion.
Those comments come after CMC Markets analyst Ashraf Laidi claimed last week that investors are optimistic that the greenback will continue to fall, thus boosting anyone with a gold investment.
"All eyes are on whether the dollar is going to be subject to a fresh selling wave," he told Reuters.
"The only source I see for that would be if the Fed gets more vocal in communicating on the next batch of Treasury buying. Anything short of that will remain neutral or positive for gold."
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