Gold Prices could be boosted by 'lower dollar risk'
Deutsche Bank's Michael Lewis claimed today (August 5th) the Gold Prices continue to rise for the rest of the year and throughout 2010 on a weak dollar, Reuters reports.
The yellow metal shares an inverse relationship with the greenback and is currently trading around the $965 per ounce mark after a strong first half of 2009.
Mr. Lewis, who is a commodities analyst for Germany's largest bank, explained that he can envisage Gold Investment being boosted by further weakness in the US currency.
"The major forces that are affecting gold are the dollar on the one hand and ETF flows on the other," he told the news provider.
"There are definitely risks that the dollar could go even weaker. The dollar could still be moving lower throughout next year."
In addition to its movements against the dollar, gold prices often tend to follow the same path as oil prices.
So gold investors were boosted last week when leading Korean thinktank the LG Economic Research Institute predicted that crude could reach $100 per barrel by 2012.
"The effect of reduced investment will emerge in 2012. At that time, non-Opec countries will not be able to offer enough oil to the world," Lee Gwang-Wu, a senior researcher at the body, told the Korea Times.
"Then, Opec is expected to make a decision of strategically controlling the oil production, thus making its presence felt. Then the oil prices might touch $100 a barrel in 2012 or 2013."
Looking to Buy Gold today? For direct access to live Gold Market prices and to save up to 80% compared with coin dealers' fees click through to BullionVault now...