Gold News

13/08/07: Sub-prime losses 'make gold market more attractive'

Gold can perhaps expect to rebound this week amid talk that investors will be turning their attention to the precious metal.

According to a Bloomberg survey, investors and analysts are generally in favor of buying gold, partly because demand is set to rise due to "mounting losses from US sub-prime mortgages".

The Bloomberg report speculates that investors will buy gold because it represents "a haven from riskier financial assets".

Some 75 per cent of those surveyed advised buying gold and only three said it was time to sell.

According to the report, many investors will decide to buy gold in this period of "financial turmoil", with central banks around the world desperately trying to address the potential losses associated with mortgage-backed securities.

According to figures reported by the Associated Press, gold traded in London at $669.85 per troy ounce this morning (August 13th) and in Zurich at $668.20 per ounce.

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