Gold Buying momentum 'to last for whole of Q4 2009'

Walter de Wet believes Gold Prices will be able to maintain their momentum until at least the end of the year, the Wall Street Journal reports.

The yellow metal's appeal as an alternative currency to the dollar is showing no signs of abating and a new record price of $1,151 per ounce was achieved today (November 18th).

Despite weak jewellery buying, Mr. De Wet, from Standard Bank - which is the largest bank in Africa - explained that physical interest is likely to be sustained into 2010.

"Although down from recent highs, we still see net physical buying," he told the news provider.

"We believe buying momentum will remain positive for most of (the fourth quarter) on high seasonal demand."

Those comments were strongly corroborated last week by Matt Zeman, a trader at Chicago-based brokerage firm La Salle Futures Group.

He noted that the growing trend of Gold Buying by central banks and the safe-haven status of the metal are giving it strong foundations for further price rises.

"The interest that central banks have shown for gold has really lit a fire under the market," he said in an interview with Bloomberg.

"People are questioning the value of not only the US currency but all paper currencies. Investors are more comfortable holding gold."

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