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Thursday, 29th January 2009 (774 views)

Gold has moved from being an unpopular commodity in 2008 to one most favoured among investors in the early weeks of this year, it has been claimed.

According to Reuters, the price of the previous metal reached $915.30 (£640) per ounce on Monday - a high of almost four months - having jumped by up to £100 (£70) per ounce in each of the last eight trading sessions.

Robert Litts of Cabot Money Management told the news source that investors were turning their attention to gold as there is "no real asset" behind currencies such as the dollar, which is becoming worth "less and less" each day.

And his comments were echoed by Clearbrook Financial's Tom Sowanick, who stated: "I think gold is rising because of fiscal deterioration and the prospect that the US may be downgraded."

Business Standard recently noted that the high prices of the commodity are forcing Mumbai-based traders to introduce discounts of up to three per cent.

 

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