Gold News

Gold investment may rise as Scotiabank predicts 'big rebound' in oil prices

A leading figure at Scotiabank claimed yesterday (December 22nd) that she expects a "big rebound" in oil prices - and therefore presumably gold prices - in around 18 months' time.

Oil prices have taken a pummelling in recent weeks since hitting record highs of $147 per barrel in July on the back of rising demand in China and other emerging nations.

But now Patricia Mohr, vice-president and economics and commodity market specialist at Canada's third-biggest lender, has explained that they should embark on a significant upturn from 2010.

Commenting on the firm's latest commodity price index, she said: "In our view, a sharp global capital spending slowdown on new oil field development, which now appears likely in 2009, will set the stage for tighter markets and a big rebound in prices early next decade."

Ms. Mohr's comments will be of particular interest to anyone considering investing in gold as many commentators believe gold prices track in the same direction as oil prices.

Her assessment comes after Chakib Khelil, president of the Organisation of Petroleum Exporting Countries, said last week that he "does not believe there is any reason" for oil prices to fall further.

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