Gold News

Credit Suisse predicts $1,000 gold

Investment bank Credit Suisse has issued new forecasts suggesting that there has never been a better time to buy gold.

The group identified increased demand – including from central banks - and a dwindling supply as the potential triggers of a likely surge over $1000 per ounce through the next five years.

Gold bullion prices, now stabilising above the $780 mark, have staged a remarkable rise since mid-August, when price levels were hovering around $650.

Credit Suisse analyst David Davis explained his group's belief in further rises in a note: "In the current environment, upward pressure on the price of gold is being driven by the economic environment surrounding the US economy."

Mr Davis also identified key supply concerns set to send gold investors into overdrive: "We find that over the last 18 years, apart from on three occasions, the supply of gold has been in deficit."

Prices of the precious metal were this morning (October 31st) at around the $783 level in London trading, with Credit Suisse envisaging a rise to as much as $1,050 per ounce by 2012.

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