OPEC meeting 'could boost gold'
A leading figure at MKS Finance has explained today (October 21st) that gold could be handed a major boost this week which will spur investment in the yellow metal.
The Organisation of Petroleum Exporting Countries (OPEC) is meeting in Vienna on Friday to address its output quotas and has already hinted at a cut.
Afshin Nabavi, head of trading for MKS in Geneva, has stated that such a move would boost oil prices and therefore gold prices due to the relationship between the two.
He said: "If they (OPEC) decide to go ahead and cut production, that should boost the oil market and could help precious metals."
Oil prices hit $147.27 per barrel in July, but the price has since halved - falling by over $1 per barrel today alone - and it is expected that OPEC will go ahead with its plan.
Another positive element for making a gold investment is the fact that demand for physical purchases is remaining high, even with the current volatile market conditions.
"Physical demand is very strong, particularly out of the Far East. For the last couple of days, it has been remarkable," added Nabavi.
"This is providing some good support at lower levels."
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