Gold News

Long-term Gold Investment positions are 'building up'

A senior figure at Investec Bank claimed today (October 20th) that investors are currently looking to take long-term positions in gold, Bloomberg reports.

Gold Prices have already risen by 21 percent this year as a weakening dollar and spiralling government debts caused by the financial crisis have improved the metal's appeal.

Darren Heathcote, head of trading at the Australian section of the international specialist bank, explained that buyers are looking to the future by making a Gold Investment.

He told the news provider: "There are long positions building up. There's a pretty good reason for it as we continue to see the US dollar weaken daily.

"The market is becoming more comfortable with diversification and more people are looking to get gold."

Meanwhile, Citigroup, the world's largest bank by total customers and worldwide branch network, has also endorsed the value of investing in gold.

It announced last week that it has increased its six to 12-month estimate for the average gold price from $975 per ounce to $1,025 per ounce.

Explaining the decision, it told Reuters: "Despite relatively weak fundamentals, we believe gold prices are being driven by a weakening US dollar, a structural increase in investor demand and diversification of US dollar reserves and portfolios."

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