Recently, gold prices surged to an 18-year high in US dollar terms, mainly on the back of the precious metal's appeal as a safe haven in times of economic uncertainty. Investors have become increasingly concerned over the impact of high oil prices on US economic growth and global inflation. While gold surged to new highs, US equity markets were in retreat. All the major indices in the US are currently showing losses for the 2005 calendar year.
For the early part of gold's bull market, the focus has been squarely on the yellow metal's performance relative to the US dollar. However, the fact that gold is now rising in value against other currencies is very positive in that we believe the bull market is moving into a new phase. Early in October, prices reached a 12-year high in Swiss francs, a 14-year high in yen, and a 9-year high in sterling. In Australian dollar terms, gold has risen from A$560 an ounce in early August to around A$635. In our opinion this is a clear sign that the bull market in gold is gaining wider acceptance.
BGF
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Recently, gold prices surged to an 18-year high in US dollar...
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