Pace of Gold Price bull run 'has quickened'
A prominent fund manager claimed today (December 11th) that Gold Investment demand has been buoyed by the recent move into four-figure territory.
Although the yellow metal hit $1,030 per ounce in March 2008, it soon pulled back and many market observers predicted that it would never overcome resistance at that level.
However, Gold Prices have been surging so far in 2009 and powered on to a record $1,227 per ounce last week amid declining faith in the US dollar.
Now Tocqueville Gold Fund manager John Hathaway has explained that this show of strength has altered the perception of gold in the eyes of the average investor.
"The pace of the bull market has quickened," he said in a recent commentary entitled 'A Contrarian's Drama', which was quoted by Mineweb.
"Further buying by central bank institutions underweighted in gold seems like a good bet. For good measure, we believe that the US Federal Reserve, watchdog of the dollar's purchasing power, no longer seems displeased to see a rise in the metal's price."
Meanwhile, those comments were strongly corroborated last week by prominent Canadian bank Canaccord Adams.
In addition to increasing its near-term price outlook from $1,100 per ounce to $1,300 per ounce, the institution explained that the current economic landscape suggests that the future is bright for gold.
"We believe macro-economic conditions remain supportive for gold and see the outcome of global financial stimulus efforts as broad currency devaluation, inflation and gold's increased status as a reserve and investment asset," it said, according to Reuters.
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