Gold News

Investors 'more comfortable' Buying Gold as price hits record again

La Salle Futures Group trader Matt Zeman believes that levels of Gold Buying are surging because investors do not trust paper currencies at present, Bloomberg reports.

The yellow metal has been smashing records with increasing regularity in recent weeks and reached another all-time high today (November 11th) of $1,119 per ounce.

Mr. Zeman explained that the upward trend is being motivated by central banks looking to increase their gold reserves and, in particular, the plight of the US dollar.

"The interest that central banks have shown for gold has really lit a fire under the market," he told the news provider.

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

Last week, Archer Financial Services analyst Stephen Platt also attempted to explain the popularity of making a Gold Investment in the current economic climate.

In similar fashion to Mr. Zeman, he noted that concerns over the strength of the greenback - which shares an inverse relationship with gold - are leading people to put their money in the yellow metal.

"The market seems to be trending higher and seems to have the momentum in its favor, as long as we don't get any major movement to the upside in the dollar," he told the Wall Street Journal.

"[Dollar weakness] is forcing a move into hard assets globally as a form of diversification. Gold is certainly one of the prime beneficiaries."

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