Gold Price rally is 'warranted by the fundamentals'
A prominent analyst has claimed today (September 17th) that all the fundamentals appear to be in place for Gold Prices to sustain their push above $1,000 per ounce.
New figures released yesterday indicated that US consumer prices increased by 0.4 percent in August, triggering fears over inflation, against which gold is used as a hedge.
Now Stefan Garber from Credit Suisse, which is one of the world's largest banking organizations, has explained that Gold Investment is on the rise as a result.
"Yesterday's higher-than-expected US Consumer Prices Index numbers spurred further investment demand," he told Bloomberg.
"The move above the $1,000 mark is being warranted by the fundamentals."
Meanwhile, Mark Pervan, a senior commodities analyst at ANZ Bank - the fourth-largest bank in Australia - has provided his own explanation for the recent rally in gold prices.
The yellow metal is often bought as a safe haven in times of economic crisis and Mr. Pervan stated that investors are worried about the current lack of risk appetite in equities.
"Gold is rallying on fears of an equity retreat. The risk is that stocks will fall and people are hedging that by buying gold," he said in an interview with the newspaper.
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