Tuesday, May 25, 2010

JP Morgan: Gold May Face 'Unlimited' Demand

Investor appetite for gold appears to be booming as prices have crept upward, says John Bridges, a JP Morgan analyst.

The precious metal could yield a large demand as fears of the euro and the dollar weakening continue, Bridges said in the report, according to the Business Insider.

Gold recently traded at $1195.50.

“A German banker once told us that gold normally trades like a commodity. However, when investors lose confidence in currencies, because the pool of gold is so much smaller than the pool of currencies, demand for gold can effectively become unlimited," Bridges said in the report. (more)

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