Analyst tips further gains as Gold Prices hit record highs again
MF Global analyst Tom Pawlicki believes Gold Prices will continue to increase until the US government stops accumulating debt, Bloomberg reports.
The yellow metal reached another all-time high today (November 6th), topping $1,100 per ounce for the first time ever as investors continued to shy away from the dollar.
With the Fed maintaining interest rates at historic lows of between zero and 0.25 percent this week, commentators such as Mr. Pawlicki are predicting further woes for the greenback.
"Until Washington stops exploding the deficit, the dollar will continue to weaken and gold is going higher," he told the news provider.
The plight of the US currency - which shares an inverse relationship with gold - was also highlighted last week by David Levenstein, a veteran of 29 years working in futures, equities, forex and bullion.
Writing for Mineweb, he predicted that Gold Prices can easily reach $1,300 per ounce from a technical perspective and correctly predicted this week's arrival at a record $1,100 per ounce.
"Frankly I cannot see any bit of news that may suddenly appear that could have a miraculously powerful effect on the value of the dollar," he wrote.
"While my experience has taught me that it is very difficult to predict future prices, all the empirical evidence tends to indicate that we can expect much higher prices for gold, and a new high of $1,100 is only weeks away."
Researching your first Gold Investment today? Don't pay more than you should! Make it cheap, simple & ultra-secure at BullionVault...