Government response to recession is 'positive' for Gold Investment

A prominent fund manager suggested yesterday (April 2nd) that governments' response to the credit crunch is providing a boost to Gold Investment, Reuters reports.

Gold Prices broke through the $1,000 per ounce barrier in February for the first time in almost a year as investors looked for a safe place to put their money as other assets faltered.

One of the main attractions is that the amount of money being printed by governments could see inflation return with a vengeance - a view expressed by Mark Johnson from USAA, which manages around £900 million.

He told the news provider: "What the governments do in response to recession is very positive for gold on the investment side."

Those sentiments were echoed recently by Patrick Pittaway from Geneva-based resources boutique URAM, who predicted that gold prices could reach $1,300 per ounce in 2009.

"Gold [Prices] will hit new highs this year. I certainly think it will get above the $1,030 high that it hit last year," he told CityWire.co.uk.

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