Gold price set to jump further: Commerzbank

An analyst at the second-largest bank in Germany says anyone with a gold investment is well-positioned for the future, the Independent reports.

The US dollar, which tends to share an inverse relationship with the yellow metal, hit a 15-month low yesterday and the Gold Price is now at a record $1,022 per ounce.

ALSO READ: Marc Faber bats for gold, silver against US dollar

Carsten Fritsch, from Commerzbank, confirmed that the travails of the greenback are providing a "tailwind", with prices likely to rise further in the coming weeks.

"A further gold price increase has to be expected, especially as short-term-oriented market participants are likely to be jumping on the bandwagon," he told the newspaper.

Meanwhile, Alex Mathews, head of research at Geojit BNP Paribas Financial Services, has also provided an explanation for the recent surge of interest in gold.

In an interview with the Economic Times, he noted that the advent of the financial crisis has heightened the appeal of the metal's safe-haven qualities.

"Long-term historical data reveal that returns on gold averaged four to five percent every year," he told the news provider.

"However, when the credit crisis struck last year, investors began selling equities and buying gold, increasing the return on it manifold."

Courtesy: www.bullionvault.com