Gold Prices look set to rise due to continued uncertainty over the US dollar, a New Zealand-based analyst has claimed.
Writing for Mineweb, Lawrence Williams admitted that the dollar could well increase in value against European currencies in the weeks ahead.
"Such dollar strength would normally suggest gold price weakness," he said.
However, Mr Williams went on to explain that most investors see the currency as "no more than the best of a bad bunch".
With almost the entire of the western world including the US in long-term "dire financial straits", many analysts also fear the possibility of a double-dip recession, he added.
Certain US states are expected to reveal significant budget difficulties in the near future, so it is likely that quantitative easing will continue apace on both sides of the Atlantic.
"Gold could yet again be the answer as it has been over the ages and there are indications that investment flows may be starting to return to the yellow metal after a short hiatus," Mr Williams said.
Writing for Australian financial website The Bull, Adam Hamilton & Scott Wright also highlighted Gold Bullion's strengths over US currency.
They suggested that the dollar is still in its almost decade-long bear run and that banks and large investors with the majority of their capital allocated to the US currency would do well to diversify with physical Gold Bullion.