Increasing oil prices 'should spur Gold Investment'

OptionsXpress futures analyst Rob Kurzatkowski claimed yesterday (June 9th) that increasing oil prices should lead to further Gold Buying, Reuters reports.

Gold Prices failed to pass $1,000 per ounce last week despite coming close to the four-figure mark, but crude prices are at $70 per barrel and fuelling inflation fears.

The yellow metal is often bought as a hedge against inflation and Mr. Kurzatkowski has explained that fresh investment demand is emerging with economic recovery on the horizon.

He told the news provider: "There is some sense that the sharp sell-off earlier in the day yesterday was overdone ... and the positive inflation outlook is still supporting the market."

Those comments come after Commerzbank, the second-largest bank in Germany, predicted that gold prices will rise above $1,000 per ounce as the US dollar continues to suffer.

"In the short term, the US dollar will be the driving factor for gold price movements," said some of its analysts in a note quoted by Market Watch.

"In case of more dollar weakness, we could see the gold price breaking through the $1,000-an-ounce threshold."

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