Gold News

Inflation continues to fuel Gold Investment

The appeal of Gold Investment remains strong thanks to continued fears over inflation, with prices of the yellow metal hovering near a mark which represents a six-week high.

Investors see Buying Gold as a hedge against inflation and doubts of the policy of some governments to print money as a way of reinvigorating their domestic economies has increased interest in the commodity.

On Friday (May 15th) gold climbed to a level not seen since March on the back of data which showed US core inflation rose more than expected in April, and Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, believes this trend is set to continue.

"Gold is inching up a bit because of inflation worries, of (governments) printing money, with investors switching to gold," he told Reuters.

Last Thursday (May 14th) gold industry insider Ted Peroulakis predicted inflation would remain a feature of the next few years thanks to the policy of Fed chairman Ben Bernanke.

He went on to forecast increased gold investment in response to the heightened inflationary pressures.

Writing on ContrarianProfits.com, he said: "Inflation could really skyrocket, especially when we finally emerge from this recession.

"Inflation eats away at your purchasing power and takes away your wealth. One of the best ways to protect against inflation is to invest in commodities."

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