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Gold Set to Rise

By   /   August 29, 2012  /   No Comments

Governments across the globe have given signs of additional economic stimulus, and if that does happen gold could climb more than it has in two years. Gold is set for a 12th year of gains as safe haven demand has been boosted by speculation of further easing by central banks. Investment holdings have hit a record on demand. Jeffrey Rhodes, global head of precious metals at INTL FCStone Inc. expects gold to reach $1,975 by the year-end. “The euro zone has been quiet of late, but that doesn’t mean the problems have disappeared. The U.S. economy has been sluggish and there is a growing belief that there is going to be QE3 soon. The anticipation is driving the market,” says Rhodes. However, the precious metal could quickly lose steam if there is lack of stimulus action. “For gold to extend its gains, it needs to continue to draw wider investor support in light of the fragile physical market,” say analysts at Barclays Plc.

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