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Global economic uncertainty increases Turkish gold prices

22 April 2011 [11:03] - TODAY.AZ
Ongoing ambiguity toward the growth power of the United States attracts investors to gold, according to Osman Saraç, deputy chairman of the Istanbul Gold Exchange, IGE.

Speaking to the Anatolia news agency, Saraç said concerns about the health of the global economy increase the demand in gold, which is seen as a safe investment vehicle. Gold set a record this week, rising above $1,500 an ounce, he said.

“Recently concerns about the financial problems experienced both in Europe and the U.S. continues to attract investors to gold. The ounce price of gold beat a new record today, reaching $1,509 in the global market,” Saraç said.

After Standard & Poor's lowering the U.S.’s credit rating to negative, the ongoing ambiguity toward the country’s economic recovery increases, while the importance of gold as a safe investment vehicle rises, Saraç said. "Signals show the U.S. will not be able to solve financial problems for a long time and gold prices will stay high."

The debt crisis in the eurozone came on the agenda in parallel with the ongoing concerns related to the economies of Portugal, Ireland and Spain and has encouraged investors to direct the gold, Saraç said. "A possible increase of the inflation rate was another factor that supports the gold prices in the market. Some officials from the Federal Reserve Bank gave an inflation warning for the upcoming months."

The increasing tension and oil prices following the political turmoil experienced in North Africa and Middle East provided all the precious medals especially gold to gain value since the end of January, Saraç said.


/Hurriyet Daily News/
URL: http://www.today.az/news/regions/84899.html

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