Gold News

Shaky economy is positive for gold bullion

Gold prices have seen a sharp increase from the steady position which they have occupied for the past fortnight.

This is due to a renewed lack of confidence in the US economy, which has prompted investors in gold to increase their buying of the metal as a hedge against inflation, according to Forbes.

One analyst from Dresdner Kleinwort told Reuters that sentiment in the market is positive for the long-term.

"Gold is reacting to a rise in oil prices and the dollar is on a weak footing," said David Holmes, director of metals sales.

A report from Fairfax investment bank also underlined the promise of gold as a long-term fixture.

"Longer-term, investors remain positive about the metal and further dollar weakness could quickly result in gold prices resuming their upward trend," the report said.

Spot gold was trading at $913.73 an ounce earlier today (April 7th). Prices have been boosted of late, partly due to factors such as the release of poor US jobs data.

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