Gold News

Outlook for gold investment 'remains bullish'

Gold prices could yet retest the magical $1,000 per ounce barrier despite the recent correction in the market, people investing in gold have been advised.

The figure was reached on March 17th this year accompanied by great media coverage, but prices have since cooled, with the US dollar experiencing a small rally.

However, two significant gold investment industry figures have predicted that despite the short-term slowdown, growth trends in the long-term still look positive.

In a detailed assessment of the future of the market, Ian McLellan, managing director at Proactiveinvestors, and Mark Allen, head of derivatives at Simple Investments Stockbrokers, stated: "The muted selling experienced since the peak is significant, as the price appears to be consolidating at these levels rather than correcting lower.

"Which in turn suggests a re-test of recent highs of $950 and $1,000 are still possible.

"In summary, there could be further short-term weakness, but the longer term outlook remains bullish."

The market saw a 60 per cent boom in people buying gold between August 2007 and March 2008, taking the gold price to a high of $1,033 per ounce.

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