Risk appetite and potential inflation 'positive for Gold Prices'
Frank Lesh has claimed today (October 29th) that Buying Gold is in vogue at present because investors are concerned about the prospect of inflation, Bloomberg reports.
According to the latest reports, the US economy expanded by 3.5 percent from July to the end of September, halting a run of five consecutive quarters of declines.
Now Mr. Lesh, a Chicago-based trader at FuturePath Trading, has explained that rising consumer prices are viewed by some as the perfect chance to make a Gold Investment.
"Risk is back in favor. Risk appetite is equated with inflation and you buy gold to fight inflation," he told the news provider.
"Economic strength can lead to inflation with everybody chasing assets. That is supportive for the gold market."
Meanwhile, Caesar Bryan, portfolio manager at the GAMCO Gold Fund, which manages $580 million, has also expressed cautious optimism about the future direction of gold prices.
The yellow metal is often bought when the dollar is struggling due to their negative correlation, but Mr. Bryan explained that the relationship is not as pivotal as some commentators may suggest.
"I don't think we necessarily need to see a lot lower dollar to see the gold price rally," he told Reuters.
"We could have a gold price rally in other currencies more than the dollar."
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