Gold News

Gold Prices 'will rise over the long term'

A well-respected investment advisor has claimed today (September 21st) that he expects Gold Prices to rise considerably over the next few months.

David Levenstein, who has 29 years' experience as a trader, believes that the yellow metal is currently on a run which will take it to $1,300 per ounce on fears over inflation.

Writing on Mineweb, he explained that the huge fiscal response by the US government to the economic downturn - and its subsequent effect on the dollar - are bullish for gold in the longer term.

"While there is no evidence of inflation at the present moment, there are a number of factors suggesting an inflationary environment for the near future," he said.

"They include the monetary policies of central banks, major tax cuts, a long-term decline in the dollar, a mammoth trade deficit in the US and America's status as the world's biggest debtor nation. This implies that gold [will] rise over the long term."

Meanwhile, David Thurtell, an analyst at Citigroup, which is the world's largest banking group, has also highlighted the possibility of a sustained run for Gold Prices.

Speaking to Reuters, he explained that the struggling greenback - which tends to move in the opposite direction to gold - is causing investors to seek solace in the yellow metal.

"The dollar seems like it could be heading for $1.50 against the euro," he told the news provider.

"There are bound to be people seeking currency hedges and gold's a good one."

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