Gold News

Gold Investment to rise on 'weakening dollar demand'

A senior official at Samsung Futures has suggested today (August 28th) that Gold Investment could rise as economic sentiment improves, Bloomberg reports.

Despite a number of sharp movements in each direction, Gold Prices have been largely stagnant during August, with just 0.4 percent being shaved off their value.

However, Chris Yu, head of trading at the Seoul-based firm, explained that the yellow metal's close inverse relationship with the dollar should see it strengthen as the recession subsides.

He told the news provider: "Gold is dominated by moves in the dollar these days. With more data supporting an economic recovery, demand for the dollar is weakening."

Another optimistic note on the future of gold prices was expressed earlier this week by Stephen Barrow, an analyst at Standard Bank, which is the largest bank in Africa.

He also highlighted the plight of the greenback, suggesting that it appears destined to struggle when the US government's huge fiscal response to the global financial crisis begins to unwind.

"Is there any evidence that the dollar has been undermined by the credit crunch?" he told Seeking Alpha.

"We think there might be and it is to be found in data on bond and stock purchases by investors."

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