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Gold Buying may rise after Goldman Sachs ups oil price view

Gold Investment could be spurred after Goldman Sachs revealed today (June 4th) that it expects oil prices to hit $85 per barrel by the end of the year.

Although the yellow metal is often bought as a store of wealth in tough economic times, it is a popular inflation hedge and has been shown to track oil price movements.

With that in mind, the bank holding giant has confirmed that it expects crude to extend its gains in the remainder of the year, having already increased by 50 percent in 2009.

"As the financial crisis eases, an energy shortage lies ahead," said Goldman Sachs analysts Jeffrey Currie and David Greely in a research report quoted by Bloomberg.

"[Crude's rise so far this year is] likely to be but the first stage in the oil price rally that we expect will accompany a recovery in economic activity."

Last week, Justine Fearns, head of investment research at independent financial advisory firm AWD Chase de Vere, also outlined a number of reasons why investors like to Buy Gold.

"It may slip up a little here and there, but the bottom line is that gold is the asset that investors turn to in times of crisis; it doesn't have to just be a hedge against inflation," she told the Daily Telegraph.

"Its liquidity is key, depending on how it is held, as it helps investors meet liabilities. It is also still recognised as an alternative currency, which adds to the reasons for [buying it]."

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