A prominent figure at HSBC has suggested today (August 5th) that current trends in the US dollar and oil are proving beneficial for anyone with a Gold Investment.

The greenback, which trades in the opposite direction to gold, is near its lowest levels so far in 2009 and oil, which tends to mirror Gold Price movements, has pushed above $70 per barrel.

Now James Steel, an analyst at the world's third-largest bank, has explained in a note quoted by Reuters that both are currently providing the yellow metal with a firm foundation.

He said: "The US dollar is at year lows to all major currencies with the exception of the (yen) and the US and many other global equity markets are at the year highs.

"Additionally, oil prices are close to year highs, as are many other commodities. These factors are supportive of the gold price."

Another factor closely watched by anyone with a gold investment is mining production figures, as reduced supplies naturally boost demand and therefore prices.

Last week, Canadian firm Inmet Mining Group revealed that it has reduced its full-year output target from 241,500 ounces to 230,000 ounces as a result of lower ore grades and depressed mine volumes.

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