Gold will rise due to problems in the United States

Gold will rise due to problems in the United States

As reported by RIA Novosti, gold prices remain a positive dynamic, standing in the region of all-time highs amid continuing concerns about the outlook for the U.S. economy, which supports demand for more reliable assets, as evidenced by stock markets.

Investor sentiment has also been influenced by the actions of central banks in Japan and Switzerland to weaken national currency rates, which are considered one of the most reliable types of investment in times of global economic instability.

“We expect the inflow of investment funds into the gold market to continue and the price of the metal to continue to rise,” Xin Yi Chen, a Barclays Capital analyst quoted by Bloomberg, said. “Investors are looking for a safer place to invest and, given the depreciation of the franc and the yen, have little choice for a safe investment.”

The rise in gold prices in 2010 by 30% became a record, in the first half of 2011 gold rose by 5.3% and in July by 8.5%. The ten-year period of growth in the value of the metal was the longest since at least 1920.

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