Nick Parsons: Time to take another look at gold

Monday, 26 November 2012 18:19

Gold is having a good year, with the Eurozone debt crisis ongoing, slowing growth in China and the US fiscal cliff rearing its head, gold is regaining favor with savvy investors. 

Head of Research at National Australia Bank, Nick Parsons, explained to RT in more detail why gold is becoming more attractive for investors.

“The attractions of gold are becoming a bit clearer, it is a hedge in uncertain times but most particularly central banks around the world, and including the United States most importantly, are targeting asset prices”, he said. “If we’re going to see any escalation of uncertainty and tensions geopolitically in the Middle East and elsewhere, but if that were to push up the price of commodities, most notably oil, then actually gold gives you a bit of a free ride there… Gold is giving you a bit of a hedge against the increasing geopolitical tensions in the Middle East”, he added.

Talking about the Russian ruble, Parsons describes its position as “comfortably neutral”: “If you look over the course of 2012, we’ve been down to 29 against the US dollar in its best level and then up to 35 and here we are trading around 31.70 – roughly in the middle of its range for the year. I think that pretty much sums up investor attitude.”


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