The recent dip in the gold price is a result of renewed strength of the US dollar, according to Angus McPhail, global oil and natural resources analyst at Alliance Trust.
He pointed out that gold fell by 17pc in October, which he believes can only be attributed to a strong dollar. He said: "Some safe haven buying has been occurring with very strong demand from retail investors. In September, the US Mint reported the highest level of demand for coins since December 1999." Over the longer term, McPhail is bullish on gold for three main reasons. Firstly, Asian economies are expected to increase their physical gold holdings as a hedge against any renewed weakening of the dollar. Secondly, the political backdrop in South Africa points to the possibility of ...
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