Gold News

Economic factors 'are supporting Gold Investment'

Richcomm Global Services analyst Pradeep Unni suggested today (May 29th) that a variety of factors are currently proving positive for Gold Investment, Bloomberg reports.

The yellow metal is traditionally bought as a hedge against inflation - it shares an inverse relationship with the US dollar - and as a store of wealth in tough economic times.

Mr. Unni, who is currently based in Dubai, explained that losses in the greenback are leading people to Buy Gold, while rising oil prices are also making it look attractive.

"Extreme dollar weakness is adding to the momentum," he said in a note quoted by the news provider.

"Ascending oil prices, concerns of inflation and fears of massive US debt have certainly been supporting [gold]."

The huge US fiscal deficit was also highlighted last week by Ken Windheim, founder of the Strategic Fixed Income hedge-fund firm, who claimed that anyone investing in gold will benefit in the long run.

"Once the Fed leaves the game, it's going to be calamitous. I don't have a high level of confidence that they will do this correctly," he told Bloomberg.

"Investors can profit by shorting the dollar and US Treasuries. Going forward, gold will be the major beneficiary."

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