Gold News

Safe haven status of gold 'to push up prices'

The perception of gold as a safe haven investment is helping to keep gold prices high, according to commodities research firm and consultancy CPM Group.

This has led to the average price of gold rising from $606.67 an ounce in 2006 to $700.11 an ounce in 2007.

CPM forecasts that the trend will continue for the foreseeable future.

"While gold prices already are at record levels, they should be expected to stay high and even rise further until such time as investors around the world reduce the level of fears," the company said, according to Reuters.

Due to current economic uncertainty, including the falling power of the dollar, investors are moving their capital into gold because they perceive it to be a safer store of value, according to the World Gold Council.

According to the organization, gold has traditionally kept its strong purchasing power even in difficult economic climates, compared to currencies which fluctuate in value.

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