Gold prices 'poised to move higher'

A senior figure at LaSalle Futures claimed yesterday (January 29th) that he expects gold prices to rise as investors are seeking a flight to safety, the Associated Press reports.

The latest bad news on Wall Street arrived in the shape of the highest ever unemployment claims and new home sales slumping to a record low as the recession continues to bite.

Matt Zeman, head trader at the Chicago-based firm, has expressed his belief that, as other commodities are increasingly suffering in the current climate, gold will remain on an upward curve.

He told the news provider: "You see these steep sell-offs in equities and we see a lot of that money coming back into gold.

"The biggest beneficiary right now of the flight-to-safety bid is gold. I think it looks poised to continue to move higher."

Mr. Zeman's comments follow the news last week that Swiss bank UBS has increased its one-month and three-month gold price forecasts to $900 per ounce and $850 per ounce respectively.

Explaining the decision in a note quoted by Reuters, strategist John Reade said: "Our client flows suggest that the developments in the banking sector have truly spooked investors again, with strong demand for coins and small investment bars."

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