Gold News

Gold prices 'will hit $1,000 again'

A significant banking analyst has claimed today (September 21st) that investors will continue to rush to buy gold as it may retest the $1,000 per ounce barrier in the coming months.

Following a remarkable week of turbulence in the financial markets, some commentators have expressed concern that the gold price may start a slump as the situation improves.

However, Eugen Weinberg, of Commerzbank, has explained that any correction in price after the recent rises would be a perfect opportunity for people investing in gold.

He said: "Such a big move as we had could be corrected. But this correction will be used by many as a chance to buy again, because the crisis of trust in the financial system is far from over.

"Market participants are still concerned, and that is why demand for gold will stay high."

Mr. Weinberg also pointed out that with risk aversion at the forefront of institutions’ agendas, mining supplies falling, central bank selling low and physical demand edging higher, the long-term outlook for gold appears to be bullish.

His comments have been backed up by Afshin Nabavi, head of trading at MKS Finance, who explained that there are still a number of banks facing problems in the near to medium-term.

He added: "If we hear any more horror stories about mega names being in trouble, people will still want to buy (gold) as a haven. We are heading for $1,000 again."

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