Gold News

Dollar fears will generate 'further Gold Investment'

John Meyer claimed today (September 25th) that Gold Investment demand looks set to remain strong in the future, Reuters reports.

The yellow metal pushed to an 18-month high of $1,023 per ounce last week, mostly led by weakness in the US dollar, with which it shares an inverse relationship.

Now Mr. Meyer, an analyst at Fairfax investment bank, has predicted that levels of Gold Buying will continue to be solid as further slides in the greenback can be expected.

"Expectations for ongoing dollar weakness are likely to generate further investor buying in gold on a worldwide basis," he told the news provider.

"As confidence returns to markets the dollar, which was seen as a safe haven, is likely to fall."

Those comments were strongly corroborated last week by Miguel Perez-Santalla, a sales vice-president at New York-based firm Heraeus Precious Metals Management.

In an email to Bloomberg, he explained that commodities such as gold are benefiting from the fact that the dollar is no longer viewed as a viable investment.

"The dollar is being attacked on all sides," he said. "The commodities are gaining on their already powerful momentum. It is all technical and investment buying."

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