Gold Prices to increase further 'while dollar fails to rebound'

A prominent figure at HSBC has claimed that Gold Prices will continue to rise while the US dollar is struggling, the Wall Street Journal reports.

Central banks have been showing an increasing interest in investing in the yellow metal in recent weeks and gold futures hit a record $1,119 per ounce today (November 11th).

Gold tends to move in the opposite direction to the greenback and Jim Steel, senior vice-president and metals analyst at the world's largest banking group, believes this relationship will provide it with further gains.

"Until the dollar puts in a convincing rebound, then the onus is to the upside in gold," he told the news provider.

Meanwhile, Ellison Chu, a Hong Kong-based manager of precious metals at Standard Bank Asia, suggested last week that Gold Prices are likely to maintain or even extend their current highs.

Outlining his belief in an interview with Bloomberg, he noted that a number of factors - such as strong demand from Asian consumers - are currently underpinning the metal's strength.

"Gold will probably hang on to these high levels. We're seeing good seasonal demand ahead of Christmas and the Chinese New Year," he told the news provider.

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