Excerpts from the Yahoo Post.
Junaid Anwar Khan, a senior precious metals dealer at National Bank of Fujairah sites the following factors for the 25% increase in the gold price this year and why, in his opinion, it is likely to continue to trend higher:
1. Financial crisis
2. Big investors
3. Shaken confidence
4. Central bank gold reserves
5. Mining firms
6. Exchange-traded funds
7. Sovereign debt default fears
He added:
"As long as these factors persist, gold is likely to find favour among institutional investors. However, if history is any guide, one can be sure that volatility in the price of gold will be the order of the day."
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