Concerns over 'dollar's international role' could boost Gold Prices
Barclays Capital analyst Suki Cooper sounded a positive note for anyone with a Gold Investment today (October 6th) by questioning the future of the US dollar.
A new report in the Independent suggested that Arab nations have held secret talks with France, Russia and China about replacing the greenback as the main oil trading currency.
Although the claims were immediately denied by Saudi Arabia's central bank and a Kuwaiti minister, Gold Prices reached a record $1,040 per ounce as a result.
Ms. Cooper from the investment banking division of Barclays - which is the 25th-largest company in the world - explained that further losses could now be incurred by the dollar.
"The dollar weakness appears to be related to ... [alleged] secret talks about oil being priced in a basket of currencies including gold rather than the dollar, which has added to concerns about the future role of the dollar in international financial markets," she said.
Gold's rise to record highs - and the rumoured plight of the dollar - vindicated comments made last week by Marty McNeill, a trader with RF Lafferty.
He predicted that any pullbacks following the metal's recent succession of rises above $1,000 per ounce would simply be a precursor to a more significant move higher.
"The key to gold is the dollar. You may get a respite here but the dollar continues to weaken," he said in an interview with Bloomberg.
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