Nervous investors pushed gold to a record $1,300 an ounce on mounting fears that the global economy could slow. Fund managers and industry experts alike say gold’s rally has further to run in the longer-term as it provides a hedge against inflation amid expectations that central banks worldwide could resort to quantitative easing to support their economies.
Spot gold firmed to $1,299.30 an ounce by 1143 GMT, after hitting a historic $1,300 an ounce and versus $1,295.60 quoted late in New York on Friday.
“Every country in the world is giving signals that it could print money…what else are you going to trust to apart from gold,” said Sean Corrigan, chief investment strategist at Diapason Commodities Management. “The longer-term outlook for gold is well supported,” he said. “There is no central bank that will stand aside and see its economy weaken.”
Source: Reuters