Safe-haven Gold Buying is returning, says HSBC analyst
A prominent analyst at HSBC claimed today (September 2nd) that the appeal of Investing in Gold as a safe haven could be returning, the Associated Press reports.
The yellow metal has a number of attractions but has been particularly favored since the start of the global financial crisis for its ability to provide a store of wealth.
Now James Steel from the world's largest banking group has explained that the recent increase in risk appetite could be subsiding, with Buying Gold stepping into the breach.
"For much of this year, gold has tended to trade with the equity markets, not against them," he told the news provider.
"Perhaps some of the safe-haven buying, which generally goes into the dollar or the fixed income markets, has redirected itself to gold."
Meanwhile, Victor Goncalves, a speculator whose resource stock selections since the end of last year have realized gains of up to 800 percent, also predicted a bright future for gold prices.
He explained in an interview with the Gold Report that the natural tension between supply and demand could see the metal increase above $1,200 per ounce in the coming months.
"[In June], I saw the price of gold year-over-year was two percent lower. Demand was up 38 percent," he told the news provider.
"That normally doesn't make a lot of sense, so I did some quick calculations to see where the price of gold should end up in relation to the increased demand. In theory, it should be $1,273 and I suspect it will get there."
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