Will increased demand for gold as a safe haven prove to drive up prices?
*MarketWatch, by Polya Lesova, January 23, 2009
“Earlier, gold soared to an intraday high of $882 an ounce, its highest level since Jan. 1. Gold gained ‘on heavy safe-haven demand as sentiment deteriorated across global equity markets,’ said analysts at Action Economics.”
“‘The true secular measure of currencies is gauged against gold,’ as the metal extends to fresh record highs against the British pound, three-month highs against the euro, three-week highs against the U.S. dollar and only three-day highs against the rallying yen, said Ashraf Laidi, chief market strategist at CMC Markets.
Gold has breached well above its 200-day moving average against both the euro and the dollar, but the metal remains 11% lower than its 200-day moving average in yen terms, Laidi said in a research note.
‘Since there remains ample upside in yen terms, Japanese investors may deem this as an opportunity to drive up the metal to next key targets, thus prompting global investor demand further higher,’ Laidi said.”
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.