Thursday, 8th June 2006 (2827 views)

According to UK-based market analyst James Moore, the gold market remains bullish despite recent downturns in the value of the commodity.

Mr Moore, a TheBullionDesk.com analyst, wrote that "the long-term up trend remains firmly in place with equity markets under pressure, energy prices high and looking to trade higher".

He also commented that inflation in the US and Europe would continue, which in turn would make gold and other precious metals "an attractive alternative to investors".

The news is reassuring for gold investors, who must be concerned by the recent slides in the price of gold on stock markets around the world.

The commodity took a further hit on Thursday (June 8) when news of the death of Iraqi terrorist Abu Musab al-Zarqawi caused oil values to slip and the dollar to rise in tandem, two factors which inevitably mean gold loses some value.

However, a European trader confirmed Mr Moore's observations, telling iafrica.com that "the up trend in gold is not broken and the consolidation in gold is good as the metal rose too fast, too quick".

 

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