Gold News

Gold Prices to be boosted by 'undermined dollar'

An analyst at the largest bank in Africa has today (August 24th) given anyone with a Gold Investment a boost by casting doubt on the strength of the dollar.

The yellow metal traditionally moves in the opposite direction to the greenback and investors are divided over how it will react to the US government's massive fiscal output in response to the global financial crisis.

But Stephen Barrow explained in an interview with Seeking Alpha that his firm believes the dollar will struggle to keep its strength as the country's debt begins to unwind.

"Is there any evidence that the dollar has been undermined by the credit crunch?" he told the news provider.

"We think there might be and it is to be found in data on bond and stock purchases by investors."

Those comments were backed up last week by Ahmed bin Sulayem, executive chairman of the Dubai Multi Commodity Center, which is a BB-rated strategic initiative of the Dubai government.

In an interview with Reuters, he also highlighted the financial crisis as a key reason why investors continue to Buy Gold.

"People's confidence in the stock market went down with the financial crisis. Investing in gold right now is a no-brainer," he told the news provider.

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