CP: Rally in gold price expected for the long-term: analyst
TAIPEI, Taiwan -- The price of gold is expected to increase in the long term, and investors may enter the market when the time is right, said a gold analyst with the Bank of Taiwan, yesterday.
The analyst made the remarks after gold prices rebounded in New York Friday on speculation a weakness in the U.S. dollar will continue, making gold an attractive investment.
Gold futures for December delivery rose 90 U.S. cents, or 0.1 percent, to US$1,051.50 an ounce on the New York Mercantile Exchange's Comex division. Earlier, the metal fell as much as 0.7 percent.
Prices rose 0.3 percent last week, the third straight weekly increase for the most-active contract. On Wednesday, the metal reached an all-time high of US$1,070.4, before falling back down to NT$1,043 Thursday.
“A correction may be seen in the short-term, as prices haven't dropped below the metal's ten-day moving average of US$1,043,” the analyst said.
However, he said a long-term rally is expected, given a slump in the U.S. dollar and relaxed monetary policies taken by central banks around the world.
