Gold News

Gold Prices 'have momentum in their favor'

Archer Financial Services analyst Stephen Platt claimed today (November 5th) that Gold Prices are showing no sign of losing their momentum, the Wall Street Journal reports.

The yellow metal has been on a bull run since 2001 but has particularly shone in recent weeks and eclipsed October's all-time high yesterday by hitting $1,098 per ounce.

Mr. Platt explained that gold's continued success can largely be explained by long-term concerns over the US dollar, which tends to trade in the opposite direction.

"The market seems to be trending higher and seems to have the momentum in its favor, as long as we don't get any major movement to the upside in the dollar," he told the news provider.

"[Greenback weakness] is forcing a move into hard assets globally as a form of diversification. Gold is certainly one of the prime beneficiaries."

Those comments were strongly corroborated last week by Walter de Wet, an analyst at Standard Bank, which is the largest bank in Africa.

He explained that Gold Prices should continue to rise in the next three months because investors are increasingly building up long positions in the metal.

"We have some decent interest in the physical side. We see some base-building going on," he said in an interview with Reuters.

"Our view is that we are going to see a general trend for dollar weakness in the next quarter."

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