Gold News

Long-term gold prices 'supported by oil'

Investors in gold should not be perturbed by the current consolidation, since prices are likely to rise in the long term.

This is according to analysts at Standard Bank - one of South Africa's largest financial service providers - who said that other commodities, as well as geo-political tensions, may serve to support gold prices.

"Oil prices at these levels should anchor precious metal investment demand as investors seek portfolio protection against rising global inflation expectations," said Standard Bank's Manqoba Madinane to Reuters.

Fluctuations in crude oil prices have been offset by disputes between Iran and the western world over nuclear weapons production.
Gold prices and oil prices traditionally move together in opposition to the price of the dollar, with bullion purchased as a hedge against inflation.

Earlier this month, analysts John Hill and Graham Wark of Citigroup said they believe gold will see a $1,000 an ounce average price during 2010.

Researching your first Gold Investment today? Don't pay more than you should! Make it cheap, simple & ultra-secure at BullionVault…


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals