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Gold Prices to climb 'until eurozone fears allayed'

Gold Prices will continue to rise until the underlying problems causing people to lose faith in the eurozone are solved.

That is according to market analyst Jay Harvey, who was speaking in an exclusive interview with the Economic Times.

He noted that the traditional relationship between dollar and Gold Prices - in which they move in opposite directions - has broken down in recent months.

This is partly because both are seen as an attractive alternative to the euro, given the extent of the sovereign debt crisis being faced by territories in the eurozone.

"Of course a lot of gold buying and buying of the dollar [is] as safe stores a value," Mr Harvey said.

"That's a situation that we have seen occurring again this year as fears over Greek debt and contagion of that debt in the eurozone has [led to] a lot of safe haven flows into gold."

Investors at Commerzbank AG also believe that the forecast for Gold Prices is bright.

The bank, which is the second largest in Germany and has nearly 63,000 employees around the world, recently upped its predictions for the value of Gold Bullion in the fourth quarter of 2010 from $1,150 an ounce to $1,250 an ounce.

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