Gold News

Levels of gold investment 'should hold up'

An analyst at the second-largest bank in Germany has claimed today (November 20th) that the levels of gold investment will continue to remain strong in the coming few months, Reuters reports.

A recent study by the World Gold Council revealed that demand for buying gold increased by 18 per cent to 1,334.4 tonnes during the third quarter, while investment demand soared by 56 per cent to 382.1 tonnes.

Some commentators have suggested that a stronger dollar will weigh heavily on gold, but Barbara Lambrecht, from Commerzbank, has suggested that the yellow metal is still appealing as an alternative investment.

She told the news provider: "Investment demand for gold should hold up because there is strong risk aversion in the markets right now. That's why we are optimistic gold will hold up."

Ms Lambrecht's comments were echoed recently by Afshin Nabavi, head of trading at MKS Finance, which manages two funds, the MKS I and the Japan Fund IV.

He explained that investing in gold should continue in high volumes as sales of bullion have persisted in the past few weeks, despite some negative press for the precious metal.

"All the hints we are getting from the physical market are positive. Demand is still very, very strong," he said.

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