London, United Kingdom (PressExposure) September 10, 2009 -- "Zen International" the Asian-based investment broker believes that the current run in gold prices could continue to surpass the £1032.70 record set in March 2008 as hopes for a swift and decisive global economic recovery recede.
Gold has soared by $40 in two trading days and reached $997.10 before trimming gains slightly.
Sources close to "Zen International" said that many traders preferred not to be long the gold market going into the Labor Day holiday in the US but the profit taking didn't push prices back significantly.
Recent minutes from the last meeting of the Federal Open Market Committee (FOMC) revealed disagreements between some of the members over the direction of future purchases of mortgage backed securities and agency debt which are seen as playing a major role in increasing the flow of credit through the economy.
"Zen International" believes that the Fed will have to provide further stimulus by buying more than the $1.25 trillion already planned and this, the firm suggests, will hurt the US dollar.
Gold usually trades inversely to the US dollar but the recent surge in its price has occurred in tandem with a firm dollar. "Zen International" analysts suggest that this is indicative of a flight to safety dynamic and merely reflects the existence of two safe-havens.