Gold News

Fears over 'emergence of inflation' should boost Gold Prices

Irish brokerage GoldCore has today (August 24th) sounded a positive note for the future of Gold Prices, Bloomberg reports.

The yellow metal has been particularly volatile during August, with a number of shifts taking it between $930 per ounce and $970 per ounce within a matter of days.

However, turning to the longer-term picture, the Dublin-based firm explained that the arrival of inflation - against which gold is often used as a hedge - is a distinct possibility.

"Hopes for an improvement in the economy and fears regarding the emergence of inflation are leading to higher commodity prices," it said in a note quoted by the news provider.

A similar outlook was hinted at last week by Nicholas Brooks, head of research and investment strategy at UK-based firm ETF Securities.

Speaking to Investors Chronicle, he highlighted another of the traditionally-accepted reasons for Buying Gold - its ability to provide a hedge against a falling dollar.

"Generally the gold price tends to rise more than the dollar weakens, which is why it really is one of the best hedges against dollar weakness," he told the news provider.

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