Wed, 22 Sep 2010 16:23:00 +0200

Precious metals forecasted to remain strong in 4th quarter – Forex.com

FXstreet.com (Barcelona) - In light of an uneven global recovery along with a cautious overall risk sentiment, Brian Dolan, chief currency strategist at Forex.com, predicts precious metals to continue gaining into the 4th quarter of 2010 as major currencies weaken. In particular, Mr. Dolan writes: “Expectations that the Fed and the BOE may initiate additional asset purchases, also known as quantitative easing, or QE2, may see those currencies come under more extreme pressure.”

In regards to the gold bullion which currently trades at record highs near $1,300 a troy ounce, Brian Dolan predicts “prices may see some pull-back on profit-taking, but gains are likely to resume into the end of the year as major currencies are expected to stay weak.”

Overall, Dolan does not see major economies falling back into recession, however “depending on the severity of the expected slowdown, that risk may become more intense in 2011.”