Metals consultancy GFMS expects gold prices to range between $750 and 1,080/oz in 2009. The consultancy argues in ‘Gold Survey 2008 – Update 2’ in the latest edition of Mining Weekly that risk aversion and a desire to preserve wealth will be the main forces behind a surge in gold investment demand.
The top end of the forecast range will imply a new high for the metal. Although the global economic downturn will have negative implications for fabrication demand for gold, GFMS suggests that gold’s “competition” for investors’ attention – stocks and bonds – will probably have an even worse time in the next few months.
Gold reached an all-time peak price of $1 023,50/oz in March last year, and GFMS is forecasting an average gold price of $915/oz in the first six months of the year, compared with an average price of $871.96 recorded last year.
Source: Mining Weekly
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