Tuesday, 23 August 2011
Gold prices remain high
PRICE gold continues to surge to the highest in the history of the U.S. $ 1,888.90 per ounce, or about RM180 1 gram yesterday due to lingering worries over the possibility of the United States (U.S.) recorded recession
doubled, while the debt crisis in Europe deepened.
Uncertain market conditions when this has encouraged investors choose to invest in precious metals because they are among the best hedge investments during the economic crisis. Affin Investment Bank head of research, Dr Nazri Khan, said he expects the gold price will hit U.S. $ 1.900 per ounce in the near term due to continued U.S. dollar weakness and fears of recession in the U.S. again.
He said he also saw the price of gold has the potential to reach U.S. $ 2000 per ounce by the end of this year due to demand for precious metals as investors prefer to invest in gold when the market volatility of the world. "The drop in ratings due to U.S. to promote the U.S. bond sell stake respectively, and buy gold. Concerns over new U.S. economic recession and weak dollar also pushed gold prices to surge to highest level, "he told The Star yesterday. Most analysts expect the market before the demand for gold will continue to rise in future particularly from China and India driven increases in income usable in both countries. They saw the uncertainty in the U.S. and Europe continues also encourage central banks around the world increase their gold reserves. "bleak U.S. economic outlook coupled with weak economic data added to the debt crisis of Europe's most taper has driven the price of gold continued to surge more than quarterly since July, "said a market analyst. "We do not see any positive factors to support the U.S. economy over the next few months," he added. Last year, the price of gold closed at U.S. $ 1,421.40 seauns, up about 31 percent compared to 2009 driven demand from China and the expectations of speculators that they will profit more from it.