Latest US economic data is 'positive for gold'

VM Group analyst Matthew Turner claimed today (February 27th) that anyone with a Gold Investment looks set to be boosted by a weaker dollar in the coming months, Reuters reports.

New figures released today revealed that the US economy, the largest in the world, shrank by 6.2 percent in the fourth quarter of 2008, compared to a third-quarter contraction of 3.8 percent.

Gold Prices have performed well so far this year despite a rising dollar - with which it normally enjoys an opposing relationship - and Mr. Turner believes the future looks bright for the yellow metal.

He told the news provider: "The weakening dollar will be based on fears of even more money being pumped into the economy, which is positive for gold."

Those views were corroborated last week by Suki Cooper, an analyst at Barclays Capital, who explained that investors are still pouring money into gold for its safe-haven qualities.

"Investors aren't looking at the normal drivers - they are sidelining the dollar strength, sidelining deflationary concerns and lower oil prices.

"They are very much buying gold as a safe-haven asset."

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