Gold Investment proving popular, says Barclays Capital

Barclays Capital has suggested today (May 29th) that Gold Investment is still being favored from a long-term perspective, Reuters reports.

Despite its potential for sharp and sudden corrections, the yellow metal is heading for its first monthly rise in three after gaining by eight per cent so far over the course of May.

With the dollar slumping by five percent during the same period, the investment banking arm of the UK's second-largest bank has explained why investors are continuing to Buy Gold.

In a report quoted by the news provider, a group of Barclays Capital analysts, led by Gayle Berry, wrote: "Beyond short-term corrections, investor sentiment remains positive, and a weaker dollar combined with expectations for a build in inflation are likely to spur investors to increase their exposure to gold."

A similar view about the value of investing in gold was outlined last week by financial services firm Gold and Silver Investments, which described it as the "ultimate form of financial insurance".

"Gold remains the ultimate safe-haven asset and investors should be certain that they own actual physical bullion in order to protect themselves from very significant macroeconomic, systemic and monetary risk," read one section of a report on ForexHound.com.

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