11/09/07: Golden horizon for investors

With the gold price now stabilizing above the $700 level and this morning (September 11th) surging above $703, experts are making positive forecasts for the precious metal.

Naveen Mathur of Indian stock brokers Angel Commodities told Money Control that the $703 level was still a good place to buy, disagreeing with concerns that investors would get cold feet once the precious metal hit the $700 mark.

Mr Mathur backed up his forecast with reference to the strong fundamentals of gold which continued to support a rise in price.

"Once it has broken particular levels, then we can also see an uptrend, now maybe little dips may come in. But once $701 now broke down, then we see a bullish trend to continue," he told Money Control.

Asian markets showed a mixed response to the jump in gold prices yesterday, with a surge in Japanese spot gold investment alongside considerable gold selling on the Morgan Stanley Capital International Asia-Pacific Index.

But many will share the positive outlook of Naveen Mathur, with the weakness of the dollar meaning that US investors and others are keener than ever to invest in the precious metal.