Gold News

Gold prices will 'begin to edge higher'

The Bank Credit Analyst (BCA) has spoken out in favour of gold bullion prices despite their suffering of falls since mid-July.

The BCA has reassured anyone looking to invest in gold bullion by claiming that it will recover in the medium to long-term, "despite the setback in crude oil prices and a steadier dollar".

These factors are closely intertwined with gold prices, and clearly the strength of oil and the weakness of the dollar played a pivotal role in gold breaking the $1,000 per ounce barrier in March.

But BCA Research argues: "Several factors suggest that gold should soon find support and begin to edge higher in both absolute terms and relative to oil.

"Specifically, the setback in crude prices will help to alleviate inflation angst at the major central banks."

In addition, the BCA claim that rising economic pressure on the European Central Bank and the Bank of England to abandon their stubborn stance could "bring lower European real interest rates, which is bullish for gold by increasing the supply of fiat money".

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