Jewelry demand and weaker dollar 'to support Gold Prices'

Samsung Futures head of trading Chris Yu suggested yesterday (August 31st) that a number of economic factors look set to support Gold Prices, Bloomberg reports.

The Commodity Futures Trading Commission revealed that speculative long positions in gold outnumbered their short counterparts by 182,982 contracts on the Comex in the week ending August 25th.

Now Mr. Yu, who is based in Seoul, South Korea, explained that jewelry demand is on the rise, while a soft dollar - which moves in the opposite direction to gold - is also boosting the price of the yellow metal.

"There are some signs that demand for jewelry is reviving, helped by a rebound in global economies," he told the news provider.

"The dollar's weakness is also lending support to commodities, including gold."

Those comments come after Mike Fitzpatrick from broker MF Global also made some positive observations for anyone with a Gold Investment.

Gold often follows a similar pattern to oil prices and Mr. Fitzpatrick explained in an interview with the Guardian that fears over inflation are currently supporting crude.

"Oil continues to ride a wave that is propelled by a fear of rising inflation and currency devaluation, Opec members' unusually high level of compliance with production constraints and a high level of oil importation into China," he told the newspaper.

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