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Monday, 26th October 2009 (671 views)

Investors are bullish in their outlook for gold, with 40 per cent of clients surveyed by Barclays Stockbrokers predicting that the price of the precious metal will continue to rise.

Gold prices hit new highs earlier this month, breaking the $1,050 (£641) per ounce barrier, the firm said.

Barclays Stockbrokers head of investments Barbara-Ann King noted that the popularity of gold has "soared" among investors over the past nine months after the credit crisis triggered a "flight to safety".

She added that while recent rallies in equities market saw demand pull back slightly, investors are once again turning to gold amid the weakness of the US dollar and continuing concerns that economic stimulus measures and monetary easing programmes could lead to a possible spike in inflation.

"Central governments around the world have already reacted by remarking that gold may become the reserve currency of choice over the dollar as its value drops compared to other safe havens," Ms King commented.

Barclays Stockbrokers is the UK's largest execution-only brokerage firm with assets under management worth over £10 billion.

 

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