Gold Prices to pick up in 2010
Gold Prices could rise significantly in 2010 if the US dollar continues to struggle against the euro, it has been suggested.
At the moment, concern over the state of Greece's debts has caused the dollar to strengthen against the euro and a short-term fall in demand for Gold Investments.
However, Reuters reports that some analysts believe this situation will reverse itself and, along with other factors, leave the dollar in decline later this year, especially if US fiscal concerns remain at the time of the mid-term elections in November.
HSBC, which had $416 billion worth of assets under management as of September 30th 2009, was quoted by the news agency as suggesting that such a situation would be good for Gold Prices.
"If the EU member nations begin to address their fiscal problems and the US fails to make progress on similar fiscal issues before the November elections, the dollar may find itself on the defensive later in the year," it is reported to have said in a note.
"This could help boost gold."
Eddington Asset Management chief investment officer Alex Allen has highlighted the fact that gold offers a safe haven from the significant risk associated with dollar and euro prices.
He said: "Every currency in the western world is being devalued. Therefore gold has some kind of value to investors."
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