Gold News

Gold prices are now 'attractive for long positions'

A senior figure at JP Morgan has claimed that the current gold price makes investing in the yellow metal for the long-term particularly attractive, the International Herald Tribune reports today (November 7th).

Rebecca Patterson, global head of foreign exchange and commodities for the firm, has explained that the recent gold price falls are being caused by investors desperately selling anything they can to get cash.

However, she believes that the typical client now wants "a numbered gold bar in his or her name" and that gold's next move will be considerably higher as fears over the state of the economy persist.

She told the newspaper: "We're starting to get to levels where, even if we have some down-side risk, prices are attractive enough to consider starting to build long positions."

Ms Patterson's comments were supported recently by Greg Canavan from Fat Prophets Management, who offered the view that now is the right time to be investing in gold.

His assessment is based around a belief that the recent rally in the US dollar - which is inversely related to the gold price - will not last for much longer.

"Gold now looks as cheap as it has been for a long time, and there's no reason why this short-term strength in the US dollar will be sustained," he said.

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