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WGC: Dollar concerns are boosting Gold Prices

A prominent World Gold Council (WGC) official has claimed that the plight of the dollar could see Gold Prices continue to rise in the long term, Reuters reports.

Investors have been shifting their money into the yellow metal because it shares an inverse relationship with the greenback, which is struggling to pare losses at present.

Now Rozanna Wozniak, head of investment research at the marketing organization, has explained that the apparent shakiness of the dollar's status as the world's reserve currency should keep Gold Prices heading upwards.

"It appears that this is broadly a result of concerns about the US dollar and the whole reserve currency issue," she told the news provider.

"There have been rumors that some countries in the Middle East are looking at moving away from pricing oil in dollars.

"That broadly reflects a wider concern about the US dollar and the ongoing debate over what other currencies should be part of the reserve currency mix."

Meanwhile, Deutsche Bank, which is the largest bank in Germany, has also added its voice to the growing number of major institutions forecasting a bright future for gold.

In a note quoted by Reuters last week, it claimed that prices will push through the $1,100-per-ounce barrier next year - representing a 30 per cent increase from its previous estimate.

One section read: "We are positioning for fresh highs in the gold price. We expect this will be driven by a resumption in dollar weakness as well as an increase in inflation volatility, which has historically been beneficial to gold prices."

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