Gold Price Rally "Robust" Says Scotia Mocatta

LEADING BULLION BANK and London market maker Scotia Mocatta today says the current surge in Gold Prices is "robust" as the Eurozone debt crisis pushes a growing number of investors to buy coins, bars and exchange-traded products.

"A look at the level of investment interest in Gold ETFs and coins highlights just how strong underlying sentiment is," Scotia Mocatta says in its monthly Metal Matters report.

"The uncertainty in Europe and the [financial] markets in general have stirred up investors' interest in owning physical gold."

Gold Prices may "consolidate" with "further dips" in the short run, the bullion bank continues, but that is only likely to attract fresh buying it says, noting how government action to "throw more money at the debt problems" risks devaluing cash.

"[That] should keep interest in gold strong."

Scotia Mocatta's view contrasts with Robert Prechter – Elliott Wave technical analyst and author of the best-selling Conquer the Crash – who told a New York conference on Monday that he still expects Gold Prices to drop about 40% from here.

Prechter first made that forecast in January 2010, when the Gold Price stood more than $100 lower per ounce.

"I still feel that gold is not going to the moon here," he told Reuters Investment Outlook Summit.

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