Gold Investment demand 'definitely pushing prices higher'

An analyst at Commerzbank has claimed that investment demand is the major factor in the current Gold Price rally, Bloomberg reports.

The yellow metal tipped the $1,180 per ounce mark for the first time ever today (November 25th) as money continued to pour out of the struggling US dollar.

Eugen Weinberg, from the second-largest bank in Germany, explained that the weak greenback, inflation fears and ever-increasing central-bank buying are all highlighting the value of Investing in Gold.

"Speculators betting on higher prices have a very good argument on their side," he told the news provider in a television interview.

"It's definitely investment demand that is pushing prices higher."

Last week, the World Gold Council released a study which shows that gold investment demand increased by ten per cent on a quarterly basis in Q3 2009.

Rozanna Wozniak, investment research manager at the organization, which seeks to market gold companies, noted that interest remains undimmed despite the current high gold prices.

"In the west it's been economic factors that have predominated more than anything else," she told Bloomberg.

"Investor flows have been driven by financial sector uncertainty, by retail investors looking to protect their wealth."

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