Gold News

Gold Investment buoyed by 'compelling' dollar weakness

HSBC analyst James Steel claimed today (September 10th) that dollar weakness is proving the major attraction for anyone making a Gold Investment.

The yellow metal passed $1,000 per ounce this week for the third time and its rise has been linked with the struggling greenback, which normally trades in the opposite direction.

Now Mr. Steel, from the world's largest banking group, has explained that the relationship looks set to underline Gold Price improvements for the foreseeable future.

He said in a note: "The traditional inverse relationship between gold and the US dollar appears to have been re-established during the current gold rally.

"The potential for US dollar weakness is among the most compelling factors supporting the rally."

Meanwhile, Miguel Perez-Santalla, sales vice-president at New York-based firm Heraeus Precious Metals Management, has also sounded a positive note for the future of gold.

He explained in an interview with Bloomberg that all thoughts of economic recovery are now being placed to one side and investors are capitalising on gold's safe-haven qualities.

"Big-fund [gold buying] from the $960-an-ounce level drove the market higher," he told the news provider.

"The stock market looking weak has scared investors and they are dumping base commodities and moving into gold."

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