Economic recovery 'supporting Gold Prices'

Indications of a widespread economic recovery are helping to prop up Gold Prices, a leading industry analyst has suggested.

Marcus Grubb, investment managing director at the World Gold Council, suggests that economic growth in conjunction with the diversity of demand is keeping Gold Prices from falling.

He said: "The diversity in gold demand is expected to continue across multiple sectors and geographies. It is this diversity which has helped insulate the precious metal from shocks impacting other assets.

"More tangible signs of economic recovery in the second half of 2009, especially in developing economies, also continue to provide support to the gold price."

Potential Gold Price rises could also come about if comments from Bob Gallagher, chief executive of New Gold, the gold producer with interests in the US, Canada, Australia Mexico and Chile, are to be believed.

Speaking to Resource Investor, he suggests that increasing numbers of people are showing an interest in the yellow metal as a result of the poor surrounding economic climate - a demand that could drive price.

He said: "More and more people are Investing in Gold as a currency and as protection against today’s financial issues."

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