Gold Prices to benefit from return of risk?

Gold Prices could be set to rise with investors having reacquired an appetite for risk, it has been suggested.

Reuters reports that the recent situation regarding Goldman Sachs has impacted the gold market, with futures rebounding on the back of a return of risk.

The news provider said: "US gold futures rebounded on Tuesday, helped by rising risk appetite across the board after the recent selloff driven by the US fraud case against Goldman Sachs."

Meanwhile, Martyn Whitehead, head of metals sales at Barclays Capital in London, said that current prices could attract investors, with the price having recently dropped and earmarked to rise, according to Bloomberg's Business Week.

He said that Gold Prices could rise with inflation, a further temptation for those looking to invest in the precious metal.

Mr Whitehead told the news provider: "You would expect to see some consumer demand down here. If inflation begins to creep back, that’s a good environment for gold."

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