A senior figure at Integrated Brokerage Services claimed yesterday (February 12th) that Gold Prices will continue to rise as a result of ever-growing investment demand, Bloomberg reports.
The yellow metal pushed above the $950 per ounce mark - its highest since July and not far short of its all-time high of $1,033 per ounce - as fears over the banking sector persist.
Now Frank McGhee, chief precious metals trader at the firm, has explained that with the $789 million US stimulus package moving to Congress, Investing in Gold is being seen as a wise long-term strategy.
He told the news provider: "We see substantial buying with people putting it in their backyards. The fear purchasers are going to scoop up gold and keep it rising."
The element of fear creeping into investors' minds was also alluded to last week by Frank Lesh, a trader at Chicago-based firm FuturePath Trading, who pointed to gold's safe-haven qualities as a reason for the strong demand.
"Worldwide, gold is seen as a safe place to be," he told Bloomberg. "It's one of the few assets that made money last year.
"Everybody wonders: 'Where should I go with my money this year?' When you look around, gold is one of the few recipients."
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