A senior figure at the Bank of Nova Scotia claimed today (November 27th) that Gold Prices will still rise despite debt concerns emerging from Dubai, Bloomberg reports.
Commodities suffered a blow after it was confirmed that government investment firm Dubai World is seeking a 'standstill' agreement from global banks over its £36 billion in liabilities.
Although five percent was initially slashed off the yellow metal, it recovered well and gold for immediate delivery was trading at roughly $1,191 per ounce today.
Now Peter Tse, head of precious metals at the Hong Kong division of Canada's third-largest bank, has explained the news from Dubai will only heighten the safe-haven qualities of gold.
"There's some safe-haven buying as people seem like they're losing confidence in everything else," he told the news provider.
"People put their flows into gold and that's probably the reason why gold is still holding up."
Meanwhile, Dylan Grice, a strategist at major European financial services firm Societe Generale, provided an even more optimistic assessment of Investing in Gold last week.
He explained that gold prices could go as high as $6,300 per ounce, based on inflation-adjusted calculations relating to the previous gold bull market in the 1970s.
"That period saw tight energy markets, overly accommodative central banks and nervousness that policymakers had lost their way. Sound familiar?" he told the Financial Times.
"Like today, central banks weren't buying gold in the late 1960s to prop it up, they were abandoning attempts to prop up the dollar."
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