The news is still good for those investing in gold despite a slight rebound on Wall Street on Wednesday (March 19th).
This was particularly obvious in Australia, where although its share market gained around four per cent, it is insignificant when compared to the $380 billion the market has dropped since its November peak, reports the Sydney Morning Herald.
The continuing volatility could turn many investors off monetary investments and onto commodity investments, in particular gold bullion, where their assets could be safer against economic turbulence.
Argo managing director Rob Patterson said that he believes there will be more bad news for the economy and for stock markets.
"Everything revolves around confidence and whether the US recession is mild or severe. The volatility is due to people looking for the signal...but another round of losses could set it back again," he said.
GFMS last year predicted that the outlook for gold prices would continue to be good in 2008 due to a number of factors, including the weak dollar and geopolitical tensions.
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