Gold News

Economic 'uncertainty' fuelling Gold Investment

Surbiton Associates analyst Sandra Close explained today (September 8th) that an overriding feeling of "uncertainty" is leading investors to Buy Gold.

With the yellow metal passing $1,000 per ounce this week, attentions will now be focused on whether it can sustain the push, unlike on the previous occasions it has reached four figures.

However, Ms. Close told the BBC that fears over the state of economies around the world as a result of the financial crisis should continue to boost Gold Prices.

"Gold's rising price is due to uncertainty all the way from personal investors right through to institutions," she said, according to the news provider.

"There are questions out there over the health of economies, where interest rates are going. All that encourages gold hoarding."

Meanwhile, James Steel, an analyst at HSBC, which is the world's largest banking group, has also highlighted the desire among investors to find a store of wealth in gold.

Speaking to the Associated Press, he noted that the US dollar - which tends to move in the opposite direction as the yellow metal - may no longer be the favored safe-haven choice.

"For much of this year, gold has tended to trade with the equity markets, not against them," he told the news provider.

"Perhaps some of the safe-haven buying, which generally goes into the dollar or the fixed income markets, has redirected itself to gold."

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