Gold has been tipped to continue to rise from current levels despite already trading near record highs by bullish investors. Research from Barclays Stockbrokers among its clients found that more investors expected the price of gold to rise than fall from here, even though the precious metal has showed signs of weakness in the last week. Barclays - which surveyed 1741 investors when gold was trading around $1,050 per troy ounce - said 40% were backing further rises in the price of the commodity, compared to 30% who thought it would pull back further from here. One fifth of respondents thought it would remain steady at current levels. Gold's popularity has soared among investors in the last year as concerns about rising inflation - caused by the unprecedented stimulus packages seen across the world - and a weakening US dollar came to the fore. The price has also spiked, partly on demand and partly thanks to the weakening greenback, moving from around $730 last October to record highs above $1,070 in the last few weeks. It now sits at its lowest level for three weeks, at just under $1,040 an ounce, but despite this investors remained confident. The head of investments at Barclays Stockbrokers, Barbara-Ann King, said while gold's lustre had been dulled in recent months as equity markets soared, investors were now more positive on the outlook. She said: 'This month has seen it's popularity pan back into focus as apparent weakness of the dollar and growing inflation concerns, driven by the substantial fiscal stimulus plans and monetary easing programmes, pushed the price up into new territory.' Barclays clients are not the only fans of the precious metal. Economists and professional investors expect further climbs in the price, caused by more weakness from the US currency.

Source