Gold News

Gold price dips 'a gift'

The recent dip in gold prices is merely a short-term triviality compared with the excellent future prospects for the precious metal, according to one analyst.

Davis Nichols of Commodity Online has highlighted the coming importance of mortgages for the dollar. He says that thanks to the fragility of commercial mortgages as opposed to residential mortgage-backed securities, banks could be forced to bail out businesses to the tune of billions of dollars, weakening the dollar further.

These factors could again prove good for gold prices, as the continuing lack of confidence in the economy leads to an increase in those investing in gold.

"The $95 price drop in gold this past week is nothing short of a gift. An unparalleled buying opportunity that will quickly be acted on and one of a likely good number. Next stop: $2,000 gold," predicts Mr Nichols.

Prices for gold bullion balanced at around $923.80 following the Easter bank holiday, Reuters reports.

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