Gold Prices to benefit as dollar is 'attacked on all sides'

A senior figure at Heraeus Precious Metals Management claimed on Wednesday (September 16th) that Gold Prices are building on their "already powerful momentum".

The yellow metal is finding favor with investors at present as the dollar - whose price tends to move in the opposite direction - continues to lose its attraction as a safe haven.

Miguel Perez-Santalla, a sales vice-president at the New York-based firm, explained that the greenback is floundering as money continues to flow into alternative investments.

He said in an email to Bloomberg: "The dollar is being attacked on all sides. The commodities are gaining on their already powerful momentum. It is all technical and investment buying."

Meanwhile, Ashraf Laidi, chief market strategist at London-based financial services company CMC Markets, has also predicted a strong Gold Price rise in the remainder of 2009.

Although he believes the metal will initially drop from its current level above $1,000 per ounce, he expects it to enjoy a concerted rally to take it much higher than its record $1,030 per ounce level.

"The metal may fall as low as $950 an ounce before rebounding to $1,200 toward the end of the year," he said in a television interview with the news provider last week.

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