Euro Debt Concerns Push Gold to 2-Week High

Concerned with the potential for more European countries to falter and further worries about the US economy, helped propel gold to a third straight day of gains touching a two-week high of $1,398.30 an ounce. Most analysts agree that gold will continue to gain as investors search for shelter from the economic turmoil.

“Increasing uncertainty regarding the role of the U.S. dollar within the international monetary system, concerns related to the stability of peripheral euro zone countries and growing inflationary pressures in Asian emerging markets, particularly China” are supportive of gold, Anne-Laure Tremblay, a London-based analyst at BNP Paribas SA, wrote in a report dated yesterday. Gold may average $1,500 next year and $1,600 in 2012, she said.

Source: Bloomberg

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