Tuesday, August 11, 2009
Gold prices could set new record highs above $1,030 an ounce in 2009 as investors flock to the precious metal as a hedge against future inflation and a weaker dollar, according to a leading fund manager.
Investec Global Gold Fund’s portfolio manager Daniel Sacks said a combination of safe-haven buying of gold as an alternative to paper currencies, inflation, and a dearth of fresh mine supply in response to rising prices are set to boost bullion this year.
“We believe gold will continue to perform well in 2009 against most assets and, in U.S. dollar terms, should attempt a breach of the 2008 highs of $1,030 an ounce,” he said.
The precious metal hit that level in March last year as a sharp slip in the dollar fuelled hefty gains. Dollar weakness tends to push investors towards hard assets, such as gold.
This article was posted: Tuesday, August 11, 2009 at 9:52 am