Gold Prices to be boosted by bearish dollar, says Credit Suisse
A senior figure at Credit Suisse predicted today (October 5th) that Gold Prices will continue to rise in the coming weeks and months, Bloomberg reports.
The yellow metal has pushed above $1,000 per ounce again and has not suffered the sharp correction that some analysts have been predicting amid its recent surge.
Now Tobais Merath, head of commodity research at the financial services company, has explained that further weakness in the dollar will see gold move higher still.
"The metal will eventually edge higher, as we have a bearish view on the dollar," he told the news provider.
"It's generally a good signal that we have managed to rise above $1,000."
Those comments were strongly backed up last week by Evy Hambro, who manages about £1.7 billion worth of assets in the BlackRock Gold and General investment fund.
Speaking to the Daily Mail, he noted that a combination of a weaker greenback and fears over inflation - against which investors Buy Gold as a hedge - are bullish signs for the metal.
"First it was fear of recession and now it is fear of inflation and worries over the weakness of the US dollar," he told the newspaper.
"People are looking for gold as a currency that can preserve their purchasing power over time."
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