Gold 'boosted by currency exchange crisis'

The crisis within the currency exchange rates of major western currencies has had a positive effect on gold trading.

This is the view of Philip Gibbs, financial manager at Jupiter.

Mr Gibbs suggested that sovereign debt problems are continuing to impact on trading of the US dollar, the yen and the euro.

However, he highlighted that the pound in particular is "in for a rough ride" over the next two to three years, Citywire reported.

The fund manager noted that gold trading was likely to benefit from this.

For investors maintaining a presence in the foreign exchange markets, Mr Gibbs said that the economies and the currencies of the emerging market countries were well placed to withstand a further decline in the global economy.

In addition to the emerging markets, the Swiss franc was noted as "an absolute winner".

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Posted by Chris Barber