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Wednesday, 8th April 2009 (1250 views)

Government stimulus packages announced in recent months will continue to fuel investment in gold, an expert has claimed.

Pradeep Unni, an analyst at Dubai-based Richcomm Global Services DMCC, told Bloomberg that concerns about inflation will continue to boost gold prices, as investors see the precious metal as a safe haven.

According to Mr Unni, the price of gold bullion could well climb back to more than $900 (£611) an ounce in the short term, with gains above $900 potentially supported by "inflationary concerns due to bailout funds".

He added that high levels of "investment demand" would also help to maintain gold prices even with the global economy demonstrating signs of recovery.

Mike Temple of London-based Gold Investments recently suggested that gold is an "excellent" choice for investors who are seeking to protect their wealth against inflationary risks in the current climate.

He was speaking following the launch of a new online service that provides buyers with the opportunity to purchase gold coins and bars.

 

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