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Gold's generally upward trend seems very likely to continue and it is increasingly being viewed as a safe haven investment, experts from ABN AMRO Bank said Wednesday.
ABN AMRO Asset Management Head of Structured Asset Management, Solange Rouschop noted that gold's spot price had reached a six-year high of 385 US dollars in February 2003.
"Even though it's done some consolidating recently, the metal's generally upward trend seems very likely to continue," he said.
ABN AMRO Asset Management Head of Investment Fund Services, Carol Wong cited several factors which lend credence to that forecast.
"First, we continue to see investors moving away from equities -stock markets are sluggish and interest rates are near their floor so the opportunity cost of investing in gold is attractively low," she said.
"Second, with continuing geopolitical uncertainty in the Middle East, Asia and elsewhere, gold is increasingly being viewed as a safe haven investment," she said.
"Third, gold production is expected to decline materially after 20 years of depressed prices, so demand looks likely to drive the price of scarce gold supplies. And last but not least, the US dollar continues to weaken against other currencies--and that trend should impact gold positively," she added.
(Xinhua News Agency May 8, 2003)
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