A senior figure at Societe Generale suggested today (November 9th) that major hedge funds are taking a positive view on Buying Gold at present, the Times reports.
The yellow metal has risen above $1,100 per ounce for the first time as concerns over the state of the global economy and a rise in US unemployment increases its appeal as a safe-haven investment.
David Wilson, director of metal research at the major European financial services firm, has explained that the struggling dollar and the prospect of inflation in the long term are also leading investors to gold.
He told the newspaper: "There's a lot of positive sentiment and it's definitely getting a leg up from that. It's also being driven by fears about higher inflation going forward.
"There's concerns about the dollar and a lot of bigger commodity hedge funds are being more positive on gold."
A similar assessment about the growing interest in Investing in Gold was provided last week by Richard Gray, a mining and metals analyst at investment dealer Blackmont.
"Given what we've seen over the course of 2009, investors are looking for an alternative investment to the dollar," he said in an interview with the Gold Report.
"As the economy recovers and there's a scenario where inflation is an issue, then there's a case to be made that gold will do well then, as well."
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