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Thursday, 9th April 2009 (1298 views)

Quantitative easing will ultimately push up inflation, potentially boosting interest in gold investment, a report has forecast.

According to the Telegraph, gold prices will increase as a result of inflationary concerns because the precious metal is "globally regarded as a great inflation hedge".

"With the gold price retrenching after the latest market exuberance, now looks like a good time to buy," the newspaper's Questor team of financial markets experts stated.

The report also highlighted the recent performance of Centamin Egypt, which is scheduled to move its Sukari Hill gold mine into production over the next few months.

Centamin has been conducting exploration work in Egypt since 1995 and recently secured a $25 million (£17.1 million) loan facility from Macquarie Bank to commence digging on an "underground decline" on the property, creating the first modern gold mine in Egypt.

Pradeep Unni, an analyst at Dubai-based Richcomm Global Services DMCC, recently told Bloomberg that concerns about inflation as a result of government stimulus packages will continue to fuel investment in gold.

 

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