World gold prices could hit $850 by year’s end, GFMS says
Forecast also suggests $1,000/oz possible in 2008
By Tom Stundza -- Purchasing, 11/20/2007 1:21:00 PM
The world gold bullion price is averaging just under $810/troy ounce this month but Philip Klapwijk, chairman of Gold Field Mineral Services (GFMS), believes gold prices are likely to approach $850/oz by the end of the year.
He tells a conference in India that the strong rally in gold that has boosted the price from $631 in January is due largely to investors “who have sought a safe haven amidst the U.S. credit crunch.” The senior GFMS analyst says that “gold prices will surely rise to around $850 per ounce by end of 2007 because of weakness in the U.S. economy, high crude prices and geopolitical tensions.”
World Gold Council's chief executive officer, James Burton,tells the London Bullion Market Association-sponsored meeting that both short-term factors as well as longer-term movements in supply and demand suggest the outlook is strong for higher gold prices. “Continued weakness in the U.S. dollar, inflationary fears fuelled by rising crude oil and unstable financial conditions all are factors that have helped boost gold in the short term.”
Finally, Klapwijk adds that spot gold prices might even breach the psychological mark of $1,000/oz in 2008.
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