POSITIVES OUTWEIGH NEGATIVES
Gold entering period of rising prices as currencies depreciate
Despite some apparently poor fundamentals, gold could well be set for a further rise this year as investor sentiment remains strong.
Author: Lawrence Williams
Posted: Thursday , 04 Mar 2010
SYDNEY -
The price of gold has seen a fairly strong recovery over the past few days - in part because perhaps fears for the Euro have diminished, but almost certainly because also there is a degree of nervousness out there about virtually all currencies, with gold seen as providing some stability in a sea of quantitatively eased paper. T here has also been some positive news too - there are signs that demand for gold bullion and gold jewellery is beginning to return in the traditional gold-buying areas - India in particular. Demand is also seen as remaining high in China. Gold mine production may be on the increase again, but only marginally so and not at a sufficiently level to change the overall supply/demand picture, and this following several years of continuing decline.
Gold entering period of rising prices as currencies depreciate
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