Bear Stearns sets high gold expectations

Investment banking giant Bear Stearns has given a boost to people looking to buy gold by predicting a likely rise over the $800 per ounce level.

Gold market bulls were met with high forecasts for the precious metal, as the financial group announced in a conference call that it expected gold to shoot above $800 should the Fed enact an anticipated quarter-point rate cut tomorrow (October 31st).

A strong upside surge from gold and silver is expected by Bear Stearns, to the tune of $685 average prices predicted for this year – a significant upward burst from where prices were in August – and even better forecasts for the next.

Even as gold futures fell away slightly from their foray near the $800 mark, the group predicted $775 average prices for 2008, with a slight fall-off to $750 anticipated for 2009.

Gold bullion investors will have been heartened by the forecasts, which promise them strong returns on what has become one of the safest perceived investments at troubled times in the market.