Gold News

Safe-haven demand 'will offset Gold Price dips'

A senior figure at Nihon Unicom has claimed today (November 30th) that Gold Prices should be able to resist even a major sell-off, Reuters reports.

With the yellow metal smashing records in recent weeks, some observers have predicted that the price could take a hit in the near future as investors look to cash in their profits.

However, Hiroyuki Kikukawa, general manager at the Tokyo-based firm's market research department, explained that the economic crisis will keep money flowing into gold.

"Even when gold succumbs to cashing out, it faces renewed demand on the dips because of its safe-haven appeal against financial jitters," he told the news provider.

Mr. Kikukawa added that any drop in Gold Prices is likely to be short-term because strong support has emerged at roughly the $1,100-per-ounce level.

A similar view was outlined last week by Anderson Cheung, director of precious metals at Hong Kong-based company Mitsui Bussan, in an interview with Dow Jones Newswires.

He noted that gold's ability to provide a store of value in tough economic times is leading to an increase in the number of people choosing long-term investments in the metal.

"People are talking about buying gold for long-term exposure, as a safe haven," he told the news provider.

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