Gold Prices 'could rally' on bargain-hunting
A prominent analyst predicted yesterday (August 19th) that a number of economic factors are in place that should see Gold Prices move higher, Reuters reports.
Trading in the yellow metal is often at a low ebb during the summer months but the World Gold Council revealed that investment demand rose by 46 percent in Q2 2009.
Now Tom Pawlicki, a precious metals and energy analyst at MF Global, explained that the current price levels could tempt investors to Buy Gold and send prices soaring.
He told the news provider: "With gold prices trading near the lower end of July's trading range, the metal could rally on better risk appetite and bargain-hunting."
Last week, the US Federal Reserve announced that it had maintained interest rates at the record low range between zero and 0.25 percent.
Investec Bank Australia suggested that the news could prompt investors to snap up gold in order to protect themselves against the future threat of inflation.
"Gold Prices were bolstered by the US Federal Reserve when at the FOMC meeting it signaled its strong resolve to keep interest rates at near zero, thereby enhancing bullion's status as a hedge against inflation," read one section of a report by the bank, according to Reuters.
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