Gold News

Argument for long-term Gold Investment 'is still in place'

The world's leading independent broker of exchange-listed futures and options has today (November 9th) endorsed the value of Investing in Gold.

With worrying unemployment data emerging from the US last week, the prospect of the country's interest rates remaining at record lows increased at this weekend's G20 summit.

A group of analysts from MF Global have explained that the plight of the dollar - which shares an inverse relationship with the Gold Price - is the main reason for buying the metal.

"The long-term positive argument [for gold] is still in place and mainly centres on weakness in the dollar, a lack of faith in US intention to support it and hedge-fund buying," they said in a note.

Another reason why investors could turn to buying gold is if supplies become restricted, because this leads to an increase in demand and therefore prices.

Last week, AngloGold Ashanti, which is the world's fourth-largest producer of the metal, lowered its 2009 production estimate to between 4.55 million and 4.6 million ounces, in comparison to its original target of five million ounces.

CEO Mark Cutifani explained that the move was largely motivated by the suspension of underground mining over safety concerns - possibly for two months - at its TauTona facility in South Africa.

"TauTona could potentially be closed until the end of this year while this remedial action is completed," he said.

"The effect of this interruption has resulted in a revision of our annual guidance."

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