Gold News

Gold Investment rising on 'strong inflationary pressures'

A senior figure at Mutiny Gold has claimed today (September 17th) that Gold Prices could easily reach $1,800 per ounce, ABC reports.

Federal Reserve chairman Ben Bernanke claimed earlier this week that the recession is over from "a technical perspective", sparking fears over the possibility of rising inflation.

Investors tend to Buy Gold as a hedge against rising prices and now John Grieve, managing director of the Australian diversified resources and exploration company, has suggested that this will underpin the yellow metal.

"Strong inflationary pressures are what attract people to gold," he told the news provider.

"You know, you'd be hoping that the Aussie dollar doesn't stay too strong [and] the South Africans have got the same problem. It's quite strange that the big mineral producers at the moment [are] the guys with the strong currencies."

Meanwhile, Richcomm Global Services analyst Pradeep Unni predicted last week that gold prices could push past their all-time high of $1,030 per ounce.

Speaking to Bloomberg, he explained that the rally is being motivated by fears over the state of the US dollar, which tends to move in the opposite direction to the yellow metal.

"If the dollar continues to be pressured by investors selling it to buy riskier assets, bullion could extend gains," he told the news provider.

"If gold can keep above $1,000 this week, it may pave the way for a test of the record."

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