The 2011/09/15 at 15:06
Gold has found a solid spot for itself above the 1,500 dollars (1,040 €) per ounce mark, even going over 1,600 dollars (1,110 €) in mid-July. Several factors have combined : the geopolitical risks in the Near and Middle East, the public debts of the euro zone, the continuing weakness of the dollar, and above all, the rise of inflation. Structural factors continue to whet the enthusiasm of investors. Central banks became net buyers in 2010 for the first time in over ten years, thus illustrating a diversification of investments outside of securities in US dollars.
In addition, investors have returned to purchases via gold exchange-traded funds (EFTs), whereas they had started to stabilise their positions at the end of 2010. “The US monetary policy is the major factor behind the rise in gold, and it is not likely to change before mid-2012. As long as short-term interest rates remain as weak in the USA, there will be reason for gold to increase in value.
The speculative dimension of gold makes its price sensitive to changing anticipations,” says the Société Générale Private Banking.