Gold Investment tipped to continue on dollar weakness

The continuing weakness of the dollar is likely to sustain the appeal of Investing in Gold, it has been claimed.

In an interview with Bloomberg today (October 12th), Bernard Sin, head of currency and metals trading at Geneva-based bullion refiner MKS Finance SA, said the increasing number of people Buying Gold could be directly related to the lack of confidence in the greenback.

The dollar, which has been hit by fears of inflation, is traditionally seen as having a contrary relationship with gold.

"Gold is basically ticking inversely to the dollar, and the dollar is a bit weaker," Mr. Sin told the news provider.

"As long as the dollar is weak, gold should trade higher."

This view was backed up by a senior figure from Credit Suisse last week (October 5th).

Tobais Merath, head of commodity research at the financial services company, predicted that the dollar outlook would sustain gold prices above the $1,000 per ounce mark.

"The metal will eventually edge higher, as we have a bearish view on the dollar," he told Bloomberg.

"It's generally a good signal that we have managed to rise above $1,000."

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