Gold News

Gold 'could rise in right conditions'

The price of gold could rise significantly if the current economic conditions continue, it has been claimed.

According to Reuters, Walter de Wet, precious metals analyst at Standard Bank, said he believes that although prices may have consolidated at the moment, it would only take certain conditions to push it beyond this.

"If gold breaks the $950 to $954 level, technically we might see a rally higher. But for the metal to test much higher, we need some increased risk aversion and that may come from some really bad US data or poor earnings results," he said, according to Reuters.

The price of crude oil is continuing to rise while the dollar becomes increasingly volatile.

Meanwhile, investors in gold could receive more good news following the announcement that investment bank Merrill Lynch lost profits this quarter, according to CNN.

It was under similar conditions in March, after the collapse of investment bank Bear Stearns, that gold shot to the record price of $1,000 an ounce.

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