Surge in Gold Prices Continues

August 19 00:00 2011

New York, August 19 – ( – August has been the best month after September 1999 for the rise in gold prices which registered an increase of nearly 14 percent this month. By 2.32 a.m. EDT, gold prices stood at $1,847.56 an ounce whereas spot gold reached an all-time high of $1,853.2 an ounce. The surge in gold prices is the result of the bleak US economic situation, worsening US manufacturing and housing data, growing uncertainty and nervousness in the stock markets, lowering of crude prices, and bad state of European banks.

Investors are looking for safer havens and gold has provided them with the best option as it is unlikely to fall in the near future. It is expected that gold prices will surge further to $1,900 an ounce in the next six months, as indicated by Metals Consultancy GFMS, a unit of Thomson Reuters. Although some analysts feel that a correction in gold prices might take place, there are strong apprehensions of another economic recession and the prices might swing in any direction.

There are strong indications that a marked change in sentiment would be essential for the price to swing downwards to $1,700 an ounce. With the major currencies of the world taking a beating, stocks tumbling like nine pins, uncertainty in the global economy and fear of another economic recession, gold investment is still a safe bet.