According to Baker Steel there is little doubt political upheaval in north Africa and the Middle East has contributed to gold’s recent rises.Longer term, he's even more confidently bullish. He expects gold to continue being bought by central banks because average holdings are still below the longer-term FX averages.
As a result, the group believes ongoing unrest could result in protracted destabilisation of energy and commodity markets, triggering increased flows into gold’s physical and equity markets.
“Egypt’s response to the crisis by banning gold exports serves to remind investors of its value as the ultimate safe-haven asset,” added Mr Baker....
Monday, April 4, 2011
Gold Likely To Rise In Short Term: Analyst
According to a Financial Times Advisor post, the manager of the Ruffer Baker Steel Gold fund said gold will continue to build on its February gains. David Baker said that ordinary investors took up the slack left by ETFs and some hedge funds when the recovery trade got rolling in January, leading to February's recovery.