Dollar and inflation fears 'to keep Gold Prices advancing'
The head of Quantitative Commodity Research claimed yesterday (October 13th) that Gold Prices look set to continue their upward momentum, Bloomberg reports.
Gold's eight-year bull run is still in full flow and it reached a new all-time high of $1,069 today in New York, surpassing the previous record, which was set on October 8th.
Peter Fertig, owner of the Hainburg-based firm, explained that further weakness in the dollar - which moves in the opposite direction to gold - and fears over inflation are likely to send the yellow metal even higher.
He told the news provider: "There's lots of concern about the weakness in the dollar and this has been driving gold.
"The fear that central bank exit strategies will come too late to prevent inflation is giving support to gold."
Meanwhile, an even more positive outlook was expressed last week by prominent economist Jeffrey Nichols, who is the head of American Precious Metals Advisors.
A renowned gold bull, he also picked up on the greenback and the prospect of inflation as the two main factors in his belief that Gold Prices will reach $3,000 per ounce in the long term.
"Although many are beginning to talk about economic recovery, those that are seeing green shoots are looking through rose-colored eyeglasses and there is significant risk of a double-dip recession with further contraction and a second down-leg yet to come," he told Mineweb.
"We have never in the economic history of the US seen a period of rapid growth in money and credit nor an extended period of negative real interest rates that has not been followed by a declining dollar exchange rate and a rising inflation rate at home."
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