World Gold Council Says Gold Remains Safe Haven Amid Volatility

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Gold bullion has dropped nearly 20 percent since October after a recent wave of fund selling, but still offers the diversity and value which investors will be looking for in a climate of high risk, said Rozanna Wozniak, investment research manager with industry body the World Gold Council.

Gold will remain a safe haven for investors in what is one of the worst financial crises in history, despite the recent price volatility, a senior industry official said on Sunday.

Gold bullion has dropped nearly 20 percent since October after a recent wave of fund selling, but still offers the diversity and value which investors will be looking for in a climate of high risk, said Rozanna Wozniak, investment research manager with industry body the World Gold Council.

"Even at around $700 gold is higher than it was about two years ago," Wozniak said. "Gold has been keenly sought after, reflecting its perception as a safe haven and store of value. There is no risk of it being affected by defaults."

Wozniak added that the strong buying by investors in gold as a safe haven had been offset by speculative investors taking profits.

"A significant proportion of this selling has reflected gold's better performance relative to other assets," Wozniak said.

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