Gold News

Gold price 'still has scope to rise'

While an increasing number of people have been turning to Gold Investment in response to the economic downturn, it is not yet too late to jump on the bandwagon, it has been claimed.

In an interview with the Times, Hector McNeil of ETF Securities said there is still scope for the price of the yellow metal to increase.

"Though [gold's] value is relatively high, it is still less than half its price at the peak when it reached $2,300 an ounce on an inflation-adjusted basis," he told the news provider.

More people are interested in Gold Investment as a result of the economic downturn, with gold assuming its traditional position as a safe haven in times of uncertainty.

In particular, Gold Investment is being driven by the weakness of the dollar, which in turn can be attributed to low interest rates, inflationary fears resulting from increased government borrowing and fears that the global economy could slide into a deeper recession.

"Purchases of physical gold have jumped over the past six months as investors' fears about the financial crisis and the possible outcomes from government efforts to support banks and economies have intensified," UBS strategist John Reade told the newspaper.

A trader with FuturePath Trading LLC claimed recently that gold is "seen as a safe place to be".

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