The gold price
Investing in Gold on the rise as 'dollar is suffering' - Friday 5th June 2009
A prominent precious metals analyst claimed yesterday (June 4th) that Gold Prices look set to rise as investors are concerned about the US government's fiscal deficit.
The yellow metal has increased by about 11 percent since hitting a low of $869.50 per ounce in mid-April and is currently trading between $980 per ounce and $990 per ounce.
Now Tom Pawlicki from MF Global has explained in an interview with CNNMoney that worries over the "funding demands of the US government" could push the Gold Price back over $1,000 per ounce.
He told the news provider: "Budget deficits create worries in the market that more money will have to be printed. The dollar will suffer in this environment."
A similarly pessimistic view of the dollar - which moves in the opposite direction to gold - was expressed last week by Calyon analyst Robin Bhar.
"People are fearful again that we could be facing a dollar collapse, which would have severe ramifications across the board," he told Reuters.
"All the factors that people have been warning about for several months now seem to be coming to the fore."
Looking to Buy Gold today? For direct access to live Gold Market prices – and to save up to 80% compared with coin dealers' fees – click through to BullionVault now...
The yellow metal has increased by about 11 percent since hitting a low of $869.50 per ounce in mid-April and is currently trading between $980 per ounce and $990 per ounce.
Now Tom Pawlicki from MF Global has explained in an interview with CNNMoney that worries over the "funding demands of the US government" could push the Gold Price back over $1,000 per ounce.
He told the news provider: "Budget deficits create worries in the market that more money will have to be printed. The dollar will suffer in this environment."
A similarly pessimistic view of the dollar - which moves in the opposite direction to gold - was expressed last week by Calyon analyst Robin Bhar.
"People are fearful again that we could be facing a dollar collapse, which would have severe ramifications across the board," he told Reuters.
"All the factors that people have been warning about for several months now seem to be coming to the fore."
Looking to Buy Gold today? For direct access to live Gold Market prices – and to save up to 80% compared with coin dealers' fees – click through to BullionVault now...
Goldbug, 05 Jun '09
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