Caution urged as gold price surges
By Zhang Fengming |
October 29, 2010, Friday
|
Print Edition
Print Edition
Gold is expected to rise to a new record of US$1,400 next year but investors should be cautious and not jump on the bandwagon to chase rising prices due to mounting risks, analysts said yesterday.
"We're still positive on gold's performance and expect it to hit a new high next year as a weak dollar supports the precious metal to glitter further," said David Leung, general manager of wealth management at Standard Chartered Bank. "However, investors should be really cautious on buying at the current high prices."
Gold rose to a record of US$1,386 an ounce earlier this month as investors became jittery about new stimulus measures from the Federal Reserve to bolster a faltering United States economy. The Fed is set to unveil the measures next week.
Leung said short-term fluctuation and profit-taking are likely to occur, but this may also open up investment opportunities once gold prices dropped below US$1,300, say around to US$1,230 to US$1,250 an ounce.
"We're still positive on gold's performance and expect it to hit a new high next year as a weak dollar supports the precious metal to glitter further," said David Leung, general manager of wealth management at Standard Chartered Bank. "However, investors should be really cautious on buying at the current high prices."
Gold rose to a record of US$1,386 an ounce earlier this month as investors became jittery about new stimulus measures from the Federal Reserve to bolster a faltering United States economy. The Fed is set to unveil the measures next week.
Leung said short-term fluctuation and profit-taking are likely to occur, but this may also open up investment opportunities once gold prices dropped below US$1,300, say around to US$1,230 to US$1,250 an ounce.
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