Rising price of gold reflects continued uncertainties - F&C's Scott

The rising price of gold simply reaffirms investor scepticism about an apparent economic recovery and places the US dollar's position as the world's leading reserve currency further in doubt, F&C's Ted Scott says.

The market strategist says gold is retaining its attractiveness because investors are seeking an asset which can reliably store value during the continued uncertainty of the times. Also reflected in the strength of the asset, he adds, is the increasing disquiet about the role of the US dollar as the world's leading reserve currency, particularly from countries with large trade surpluses which have invested in US Treasury Bonds, such as China. "The US dollar's weakness has established a clear link with the ascent of the gold price as China has been reducing holdings in US Treasury Bond...