Tuesday, March 27, 2012

Gold still safe bet

Gold prices have seen a spectacular rally over the past decade. But in recent months, prices of gold have come down. This is due to the positive economic data coming out of the United States, which showed that the country's economic recovery is gaining momentum. This combined with a buoyant equity market and receding fears of European debt crisis has prompted investors to take money out of the bullion.

So, is the gold's bull-run coming to an end? Not according to Barclays Capital who sees this most recent sell off as an opportunity to buy the precious metal. They believe gold will head towards USD $1,850 per ounce due to inflation concerns and currency debasement. They also believe that lower Russian exports will lead to supply deficit in the market, thus pushing the prices of gold further north. Also, there is a possibility of further quantitative easing (QE3) by Federal Reserve which could also provide boost to gold prices

No comments:

Post a Comment