A prominent analyst suggested today (October 29th) that physical Gold Investment positions are beginning to build up over fears about the dollar, Reuters reports.
Since passing the $1,000-per-ounce mark recently, market commentators have been divided on which direction the yellow metal's next significant move will be in.
Walter de Wet, from Standard Bank, which is the largest bank in Africa, explained that he is expecting further gains because the greenback looks set to struggle for the next three months.
He told the news provider: "We have some decent interest in the physical side. We see some base-building going on.
"Our view is that we are going to see a general trend for dollar weakness in the next quarter."
Those comments were strongly echoed last week by ScotiaMocatta, which is the precious metals division of the Bank of Nova Scotia - the third-largest bank in Canada.
In a note viewed by Reuters, the group predicted that gold prices could easily reach as high as $1,400 per ounce over the course of the next 12 months.
"Gold is going through a very interesting time, but there are a multitude of factors influencing the price, some of which are quite contradictory, such as the presence of deflation and the fear of inflation," read one section.
"We also have an uneasy feeling that after the near catastrophic events seen over the past 12 months, the sharp recovery seen since March seems too good to be true, and for that reason it probably is."
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