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Tuesday, 29th September 2009 (3797 views)

Investors' continuing demand for gold amid the current economic uncertainty will continue to "drive the market" and support prices, an expert has said.

Wallace Ng, chief precious metals dealer at the commodities derivatives unit of Fortis Bank, told Bloomberg that continuing volatility in global stock prices would "encourage a flight to safety" among many investors.

A weaker US dollar could also persuade investors to move their holdings into gold.

Gold has traditionally been seen as a safe haven and a store of value during periods of economic stress.

"Investment demand will continue to drive the market," Mr Ng said.

His comments come after Darren Heathcote, head of trading at Investec Australia, told the Age that the outlook for gold remains positive.

Mr Heathcote added that he also expects demand for physical gold to pick up as "we head towards the wedding season".

 

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