Gold News

Gold Prices to 'recover well' when inflation arrives

An analyst from one of Russia's leading universal banks claimed today (August 19th) that investors will reap the rewards of Buying Gold when inflation returns to the economic landscape.

The yellow metal has traditionally tended to move in the opposite direction to the US dollar so it often finds favor as a hedge when consumer prices begin to rise sharply.

Although VTB Capital's Andrey Kryuchenkov explained in an interview with Reuters that a deflationary environment is currently prevailing, he added that Gold Investment will eventually pay off.

"For the rest of the month gold will be trading on sentiment (and on) the dollar," he told the news provider.

"I expect prices to recover well when we have full-blown inflation, as (gold is) an inflation hedge ... but right now we are still far off, we are still pretty much in deflation."

Meanwhile, Toby Hassall, an analyst for CWA Global Markets in Sydney, also expressed a positive outlook on the future of the gold price.

Speaking to Bloomberg, he noted that the recent dips in the yellow metal may stop at $930 per ounce as investors view it as a decent entry point, particularly with the greenback looking far from solid.

"It's too early to say the downtrend in the dollar has been broken, so I think we should probably look for some support for gold around $930," he told the news provider.

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