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Gold Prices 'being buoyed by the dollar and oil'

Peter Fertig claimed today (August 21st) that a combination of the dollar's travails and stronger oil prices are having a positive effect on Gold Prices, Bloomberg reports.

The yellow metal has shown itself to share a strong inverse relationship with the greenback, while also often tending to move in the same direction as crude.

Mr. Fertig, who owns Hainburg-based firm Quantitative Commodity Research, explained that Gold Buying has been particularly favored since oil prices pushed above $70 per barrel.

He told the news provider: "The US dollar is a bit weaker and this is a supportive factor for gold. Gold seems to be well supported with oil prices above $73 a barrel."

The plight of the dollar and its benefits for gold were also highlighted last week by Steve Chun, a Seoul-based trader with Hyundai Futures Co.

He explained in an interview with Bloomberg that the possibility of inflation as the economy emerges from the financial crisis should see gold investment continue to rise.

"Investors are seeking shelter from a weakening dollar," he told the news provider.

"We expect physical demand for gold to rebound, with some gap of time, as global economies are recovering gradually."

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