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Gold Prices to resume upward momentum after 'respite'

RF Lafferty Inc trader Marty McNeill suggested yesterday (September 28th) that Gold Prices will continue to rise in the future as the dollar is struggling to pare its losses.

A number of market commentators have predicted that the yellow metal will suffer a sharp correction after dropping below $1,000 per ounce in the past few days.

However, Mr. McNeill explained that any lull will be purely temporary as the greenback - which shares an inverse relationship with gold - is not an attractive investment proposition.

"The key to gold is the dollar. You may get a respite here but the dollar continues to weaken," he said in an interview with Bloomberg.

A similarly optimistic outlook for the future of Gold Investment was provided last week by UK-based firm ETF Securities.

In a new report, it claimed that the yellow metal will continue to find favor from a long-term viewpoint as investors are concerned about dollar weakness and inflation - against which it provides a hedge.

According to Bloomberg, one section read: "The largest buyers of gold exchange-traded commodities are institutional investors buying as a long-term hedge against inflation, dollar depreciation and other risks.

"The signal exchange-traded commodity holdings are sending is that most large investors believe these risks will continue to rise."

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