Gold Price to stay high due to economic 'panic'

A South African analyst has predicted today (March 2nd) that Gold Prices will remain broadly flat for the rest of this year, Mining MX reports.

The yellow metal has cooled by around six percent since topping the $1,000 per ounce mark recently for the first time since March 2008, when a record high of $1,030 per ounce was reached.

Now Peter Major from Cadiz Corporate Solutions has suggested that anyone with a Gold Investment will be well served in the long run as fears over the economy refuse to subside.

He told the news provider: "It shows the extent of the panic in the market for the gold price to be trading so high."

The view that people are buying gold as a result of panic was hinted at last week by Ralph Preston, a commodity analyst with San Diego-based firm Heritage West Futures.

He explained in an interview with the Daily Telegraph that investors are snapping up gold as they view it as a store of wealth, despite the fact that the dollar has also strengthened of late.

"My clients are looking to gold as a safe haven. Gold is turning into a currency and competing with the dollar. It's the battle of the safe havens," he told the newspaper.

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