Gold News

Gold Prices 'have momentum'

The value of Gold Bullion is likely to continue rising because the precious metal currently has momentum among investors.

That is the opinion of Ole Hanson, an analyst at Saxo Bank, which is headquartered in Copenhagen, Denmark, and also has branches in London, Paris, Dubai, Zurich, Singapore, Milan, Madrid, Tokyo, Beijing and Sydney, among others.

Speaking to Reuters, he suggested that fears over the stock and commodity markets will support Gold Prices in the future, even if they do not reach new peaks.

Mr Hanson said: "The momentum is with gold at the moment and, unless the market takes a different view of the eurozone debt crisis, we'll remain supported."

That is because investors continue to Buy Gold as a hedge against inflation and to protect themselves from the other risks associated with the large sovereign debts facing countries on both sides of the Atlantic.

Another factor that could support Gold Prices is increased jewelry demand, something that was seen by Indian exporters in 2009.

Figures from the Gem and Jewellery Export Promotion Council show that $401.7 million (£277.9 million) of gold jewelry from India was sold to international markets during April, a 20 per cent rise year-on-year.

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