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Gold Investment 'to be boosted' if economy is hit by flu pandemic

A prominent figure at Saxo Bank claimed today (April 27th) that the appeal of Buying Gold could surge if the potential swine flu pandemic has a negative impact on the economy, Reuters reports.

The yellow metal has received a number of technical boosts in recent weeks, not least with the revelation that China has increased its holdings by 75 percent since 2003.

Now Ole Hansen, a senior manager at the fourth-largest Danish bank by market capitalisation, has explained that Gold Investment could be affected if the virus spreads.

He told the news provider: "If there is some worry that this will prolong the slump, or will increase the difficulties of the economy returning to some kind of shape ... that might have an impact on gold."

Mr. Hansen's comments come after BlackRock Inc, the largest publicly-traded US asset manager, noted last week that demand for gold remains strong, with investors still favouring its various qualities.

"Long-term fundamentals remain tight, with little sign of any oncoming supply glut," it was quoted by Bloomberg as writing in a weekly report.

"On the demand side, the rising wealth of emerging economies is likely to support jewelry demand whilst the ongoing financial turmoil and inflationary pressures are likely to continue to stimulate investment demand."

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