“Dawson & Fielding Inc.”-The price of gold has pulled back after its sustained rally.

Asia-based boutique brokerage, “Dawson & Fielding Inc.”, has apparently told clients that the pullback in the price of gold represents healthy secular bull market activity and they should not be alarmed.

“Dawson & Fielding‘s.” sources say the firm explained that the rally in the precious metal ran the risk of becoming a bubble and that a period of retrenchment and consolidation was necessary for the continuing viability of its safe-haven status.

The firm is of the opinion that further pressures and headwinds being faced by the major developed economies going into 2010 will serve to underline the relevance of gold as a hedge against governmental profligacy for as long as they continue to resort to inflationary measures to prop up their economies following the crippling recession.

“Dawson & Fielding Inc.” maintains its contention that the weakness of the US dollar played a less significant role in the run-up of gold and this they say is reflected in the limited fall in the price. One of the sources added that the advance in the dollar would have caused a much larger fall in the price of gold had it happened a year ago.

The firm maintains its view that the emergence of central banks as net buyers of gold has provided the metal with a safety net in terms of price as those of China, India and Russia continue their buying activity.

“Dawson & Fielding Inc.” are thought to have raised their price target for gold in 2010 to $1500 and re-issued their advice to clients to acquire the metal on price dips.