Gold News

Significant Gold Buying 'was lurking in the wings'

A prominent figure at Saxo Bank has suggested that increasing numbers of new investors are deciding to Buy Gold, the Daily Telegraph reports.

The yellow metal dipped to $1,140 per ounce last week following a lengthy rally, but it has bounced back strongly and reached another all-time high of $1,200 per ounce today (December 1st).

Ole Hansen, a senior manager at the Danish online investment bank, explained that this development indicates that gold undoubtedly has some solid support in the current economic climate.

"The fact that we are seeing the dollar weaken is helping to drive gold," he told the newspaper.

"Everyone was waiting for that correction and the way gold recovered suggested there was a lot of buying lurking in the wings [among] people who missed the opportunity to get into the market in the first place."

The move to $1,200 per ounce was correctly predicted last week by Bernard Sin, head of currency and metals trading at Geneva-based bullion refiner MKS Finance SA.

He noted that the continued fears over the future of the dollar - which shares a negative correlation with Gold Prices - would inevitably see the metal extend its recent gains.

"All this buying shows no confidence in the dollar," he said in an interview with Bloomberg.

"We're going to see some physical demand in the festive season which may push prices to $1,200 an ounce."

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