Gold News

Gold Prices 'can easily break new highs'

The chief investment officer of London and Capital suggested on Monday (February 9th) that Investing in Gold is a wise strategy as inflation may be in play for "years to come", Reuters reports.

The International Monetary Fund revealed last month that losses on US loans and securitised assets could reach $2.2 trillion, significantly higher than the October prediction of $1.4 trillion.

With that in mind, Ashok Shah, from the fund management firm, explained that Gold Prices are sure to be boosted if governments continue to pump money into the world's major economies.

He told the news provider: "Governments are supplying liquidity into the system and unless they sterilise it (issue bonds) they are laying the foundations for much higher inflation for years to come ... These are the things gold thrives on.

"More corporate, financial and economic bad news will do the trick. Once it gets a foothold and picks up momentum gold can easily break through to new highs."

Just last week, Commerzbank analyst Eugen Weinberg hinted at the possibility of higher gold prices when he noted the flow of investment interest in the yellow metal, mainly for its safe-haven qualities.

"Gold is currently working as a 'fear indicator', signaling risk aversion of market participants," he told Reuters.

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