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Gold Prices 'will not lose value like a currency'

CMC Markets analyst Michael Hewson has predicted that the current Gold Price rally is likely to continue for the foreseeable future, AFP reports.

The yellow metal has surged by more than 50 percent in the past 12 months and reached yet another all-time high of $1,217 per ounce today (December 2nd).

Mr. Hewson, from the UK-based financial derivatives firm, explained that the uncertain economic climate at present should keep safe-haven money flowing into gold.

"It is a store of value while investors have serious doubts about the global financial system. It is something that is not going to lose its value like a currency," he told the news provider.

Those comments were strongly backed up last week in a new research report published by Deutsche Bank, which is the largest bank in Germany.

Analysts from the institution pointed to increased central-bank buying and the soft US dollar - which tends to move in the opposite direction to gold prices - as positive factors for the metal.

"We believe the activity of central banks [who have been increasing their gold reserves] and seasonal weakness in the US dollar in the final four weeks of the year will sustain the strong rally in Gold Prices," they wrote, according to CNN Money.

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