A spike in Gold Prices is being supported by continued fears among investors about the state of global currencies.
That is the view of Pradeep Unni, senior analyst at international commodity services company Richcomm Global Services in Dubai, who believes that the market is in a strong position in Asia.
Speaking to the Economic Times of India, he said: "Sentiment seems to be clearly bullish because of the current currency debacle and as more bad news hits the market, gold should ideally trade firm."
Although climbing Gold Prices did prompt selling from Indian jewelers, the newspaper noted that demand remained strong in the electronics sector.
It also wrote that Gold Prices are gaining because investors have once again been dumping euros on the back of fears over debt problems in Greece and Portugal.
Commerzbank analyst Eugen Weinberg appears to take a similar view, suggesting that Gold Prices have increased by seven per cent this year because of concerns over sovereign risk in Europe, particularly Greece.
He said to Reuters: "Gold seems to be defying the traditional pattern, stronger dollar, lower gold prices, over the last weeks, pointing to stronger perception of gold as an alternative currency."
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