The founder of Merk Investments claimed today (October 8th) that the rally in Gold Prices has enough momentum to continue for the foreseeable future, Reuters reports.
In a record-breaking week for the yellow metal, the previous high of $1,030 per ounce has been surpassed, with prices now trading just above the $1,050-per-ounce mark.
Axel Merk, who started the mutual fund in 2005 with the aim of Investing in Gold, has explained that the dollar - which moves in the opposite direction - looks set to struggle further.
He told the news provider: "I don't think (gold's rally) is overdone at all. It's going to be over when the policy makers come to their senses and the chance of that happening is very low."
"I wouldn't mind if the metal pulls back - I would buy some more. Of course it may happen, but I am not concerned about a pullback."
Those comments were strongly backed up last week by Tatsufumi Okoshi, a senior economist at Nomura Securities, which is the oldest brokerage firm in Japan.
He explained that gold prices will continue to rise well into next year because the metal is proving to be far more attractive than rival investments in the current climate.
"The gold market has already shifted its range and I think the upper side of the range will be $1,100 in the six months to come," he told Reuters.
"Stocks are already on the defensive, bonds are too expensive to buy and commodities other than gold have factored in most good news into their prices. So gold looks a better choice than other asset classes."
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