Gold Prices 'should benefit from US deficit'

Future Gold Prices could benefit from the forecast of a near-record public household deficit in the US, it has been suggested.

That is according to Eugen Weinberg, a senior analyst with Commerzbank AG, which employs 43,000 staff and is Germany's second largest bank.

He suggests that particular details in the US economy could have a significant impact on Gold Prices, reports Bloomberg.

According to the news provider Mr Weinberg wrote in a note: "Despite the strength of the US dollar, gold is holding up relatively well.

"Gold should also benefit from the outlook that the next fiscal year’s public-household deficit in the US will amount to $1.3 trillion, close to its record level of $1.6 trillion last year."

A recent article in CNN Money has given further evidence of expert backing of the precious metal as an investment opportunity and safe haven against the US dollar.

The piece reveals that Peter Schiff, the Connecticut investment adviser, believes that investors should Buy Gold instead of backing the US dollar.

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