Gold News

Gold Prices to rise on 'inflation worries and currency devaluation'

UBS strategist John Reade is expecting investors to continue to Buy Gold in the coming months as a hedge against inflation and a declining dollar, Reuters reports.

The yellow metal has threatened to pass its all-time high of $1,033 per ounce already this year, breaking into four figures on February 20th before dropping back as a result of profit-taking.

However, Mr. Reade has explained that Gold Investment has been increasing in popularity for some time as people are focusing on the two major economic trends in its favour.

He told the news provider: "Gold is going up when the dollar is weak, but none of the major currencies are standing out as looking particularly attractive at the moment.

"I am seeing gold as being bought, recently at least, because people are concerned about the risks of longer-term inflation and concerned about the debasement of major currencies."

A similarly optimistic view for gold was put forward last week by Trader Tracks analyst Roger Wiegand, who explained that he expects an "extended rally" in prices after a drop to $850 per ounce during the summer.

"Gold should rise significantly in the fall. I know manipulators will be trying to cap it and keep the lid on, but one of the keys could be a rally price break through $1,007 - the former high," he told the Gold Report.

"Then gold could run away to $1,150 and more, easily up to $1,260. The other event, depending upon manipulation, is the chance gold could rise as high as $1,375 on the December futures contract."

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