Gold investment rising as people seek safe havens
The head of a leading trade alert service claimed on Friday (January 23rd) that gold investment is on the rise as the threat of inflation hangs over global markets, Market Watch reports.
The price of the yellow metal has just climbed above the $900 per ounce mark, taking it to its highest level since October 8th.
Kevin Kerr, editor of Global Commodities Alert, has noted that the move can be explained by nervy investors looking for a store of wealth and choosing gold for its safe-haven qualities.
He told the news provider: "Investors are starting to see that the yellow metal is one of the few havens for protection from what is an inevitable wave of inflation.
"Technically, gold is surging through some key levels, along with silver, and we are starting to see investors dip their toes back in the market."
Mr. Kerr added that gold "may well lead commodities" as they emerge from the recent widespread sell-off in the markets.
His views were echoed last week by Michael Blumenroth, a trader at Deutsche Bank, Germany's largest bank, who claimed that inflation fears are running high among investors.
"Investors are buying into gold as a hedge against inflation and turmoil in the financial markets. (They think) maybe the worst is not over," he told Reuters.
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