Gold News

Commerzbank: Gold Price 'to break $1,000 per oz'

Analysts at Germany's second largest bank have predicted today (June 2nd) that Gold Prices will push through the $1,000 per ounce barrier, Market Watch reports.

The yellow metal has already grown by 11 percent since the start of the year, with the 9.8 percent leap last month representing the largest monthly increase since November 2008.

Now a group of Commerzbank analysts, led by Barbara Lambrecht, have indicated that gold will continue to rise as the dollar - to which it moves in the opposite direction - struggles.

"In the short term, the US dollar will be the driving factor for Gold Price movements," they said in a note quoted by the news provider.

"In case of more dollar weakness, we could see the gold price breaking through the $1,000-an-ounce threshold."

Those comments come after Charles Morris, who manages HSBC's $2 billion Absolute Return fund, highlighted the value of making a gold investment in the current economic climate.

"It's the highest-quality asset of all: high returns don't tend to come from high quality assets - but wealth preservation does," he told Fund Strategy last week.

"It's about permanence of long-term value: you could pass a bar of gold through the ages from the ancient Egyptians to the present day and it would still hold its value: its relative value through time is constant."

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