Investec: favourable long-term outlook for gold

Sacks explained that some of the recent fall in the gold price was attributable to the bounce in the dollar, against the Euro and the Yen. He explained: "Although gold has no fundamental reason to be correlated with the Euro/$ exchange rate, it does have a 91pc historical correlation to the movements in the Euro/$ exchange rate. A dollar strengthening from current levels could therefore derail the positive outlook for gold." He continued: "We still believe that the dollar will continue to weaken against the emerging currencies which are fundamentally important for the gold market ie: ...