Gold News

Gold Prices to benefit from 'under-pressure dollar'

Prominent analyst Carsten Fritsch claimed today (July 27th) that Gold Prices will continue to move higher if the dollar remains "under pressure", Reuters reports.

The greenback - which shares an inverse relationship with the yellow metal - has struggled recently as gold has maintained its position at around the $950 per ounce level.

Now Mr. Fritsch, from Commerzbank, the second-largest bank in Germany, has explained that anyone with a Gold Investment will be rewarded if more economic data undermines the dollar.

He told the news provider: "As long as the dollar remains under pressure due to falling risk aversion, then gold should also go higher.

"At the moment, gold is not behaving like a safe haven, but is moving higher when risk aversion is declining."

Those comments come after Lannie Cohen, president of Indianapolis-based futures broker Capitol Commodity Services, provided a ringing endorsement of gold last week.

She explained in an interview with Bloomberg that she can see gold prices reaching at least $1,600 per ounce - comfortably an all-time high - in the next few years.

"Gold is now trading like a currency and is rapidly becoming the preferred currency of choice," she told the news provider.

"Central banks throughout the world are printing money at a rapid pace and soon investors will lose complete faith in paper currencies. At that time, within the next one to three years, gold will soar to $1,600 and beyond."

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