Gold News

Gold Investment 'being driven by dollar weakness'

An analyst from VTB Capital has claimed today (June 1st) that Gold Investment is on the rise due to a combination of dollar weakness and fears over inflation.

Gold Prices reached their highest levels in more than three months today, touching $985 per ounce as investors continue to search for an alternative investment in the current economic climate.

In an interview with Bloomberg, Andrey Kryuchenkov from the London-based firm explained that investors are yet to wake up fully to the threat of inflation.

He told the news provider: "Most of the ongoing rally in the precious metal is more driven by a stark weakness in the US dollar than the risk averse buying we saw last winter. Inflation concerns are gradually creeping onto the investor agenda."

Those comments come after UBS, the world's largest manager of private wealth assets, decided recently to keep its one and three-month gold price predictions unchanged at $950 per ounce and $1,000 per ounce respectively.

John Reade, a precious metals analyst at the Swiss bank, explained that the decision was based on "rising market inflation expectations and signs of concern about US assets across the spectrum".

"Gold could run higher to take out the all-time high of $1,030 an ounce from February last year," he told the Financial Times.

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