Gold News

Credit crunch to push up gold prices?

A report by the International Monetary Fund has suggested that the current credit crisis could continue.

This could be good news for investors in gold, as more buyers hurry to secure their assets in the precious metal as a hedge against inflation, which could push up prices.

The IMF report has advised financial institutions to move quickly to raise equity and medium-term funding; however, this may not be easy given the current lack of confidence in the economy.

A GFMS report released on Wednesday (April 9th) states that a number of factors could conspire to enable the demand for gold bullion to continue, even pushing prices up to a possible $1,000 an ounce again by late 2008.

These may include inflationary expectations and an increase in the perception of a need for risk aversion, said the report.

The previous record high for gold prices, reached on January 21st 1980, was toppled when, on March 13th 2008, the price broke through the $1,000 per ounce barrier for the first time

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