Gold Prices to 'penetrate higher level' on inflation fears
A senior figure at Standard Merchant Bank has claimed today (September 1st) that he can see Gold Prices rising when economic recovery begins to gather pace, Bloomberg reports.
The yellow metal has still enjoyed a strong year to date - despite some critics predicting a tough few months - with the price increasing by 8.2 percent, mainly on dollar weakness.
Now Ng Cheng Thye, a director with the Singapore bank, has explained that the potential for the arrival of inflation when markets are reinvigorated could encourage Gold Investment.
He told the news provider: "You need some bullish factors, not so much on the dollar but also on interest rates.
"When the recovery is in full steam, people will be concerned about inflation, then gold can penetrate to a higher level."
Meanwhile, Jeffrey Nichols, managing director of American Precious Metals Advisors, also expressed a positive outlook for the future of gold last week.
Writing on Seeking Alpha, he explained that an "agonizingly slow" economic recovery and the plight of the dollar are key reasons why investors should buy gold.
"We remain extremely optimistic on the Gold Price outlook - but, unlike many other bullish analysts, we believe the metal's ascent will take several years to reach its next long-term cyclical peak," he wrote.
"Ultimately, gold will most likely climb into the $2,000 to $3,000 range - but it could go even higher given the right confluence of economic and political developments."
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