Gold News

Gold Investment could become 'everyone's touchstone'

A prominent figure at Merrill Lynch Global Wealth Management has predicted that Gold Prices will eventually establish themselves above $1,000 per ounce, the Daily Mail reports.

The yellow metal has broken through the psychologically-significant four-figure barrier twice already this month, adding to similar moves in March 2008 and February 2009.

Some analysts believe that a sharp correction is around the corner but Bill O'Neill, a portfolio strategist at the firm, believes the outcome will be different on this occasion.

"If there is even a hint that central banks are being over-generous in their fiscal stimuli, gold will become everyone's touchstone," he told the newspaper.

"Investors worried about the quality of the currency or government bonds they are holding will seek the reassurance of gold."

Last week, Matt Zeman, a metals trader at Chicago-based firm LaSalle Futures, also expressed his belief that the next significant Gold Price movement could be upwards.

He explained that further losses in the dollar, which shares an inverse relationship with gold, could provide a major boost for anyone investing in the precious metal.

"The dollar's getting kicked pretty good," he said in an interview with Reuters.

"Gold's move is all speculation that the dollar is going to continue to go down the tubes."

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