Gold could go back above $1,000 per oz 'by the end of the year'

A senior figure at a major investment fund company has predicted that the gold price will recover strongly from its latest slump, Channel News Asia reports today (November 5th).

The recent rally in the dollar - which has flown in the face of the economic crisis - has seen the yellow metal's price drop by around 17 per cent in the past six months, despite its traditional role as a safe-haven investment.

However, Aaron Smith the managing director of Superfund Financial, has explained that he would not be surprised to see gold retest the $1,000 per ounce barrier, which it last broke in March.

He told the news provider: "It's not inconceivable for gold to go back to its nominal all-time high, which was over $1,000 per ounce, by the end of the year or Q1 next year."

The recent deluge of bailouts for major financial institutions and concerted efforts around the globe to fend off the economic downturn have undoubtedly diluted gold's appeal in the short-term.

However, mining industry columnist Lawrence Williams has explained that the true effects of the liquidity crisis will eventually unravel and it will be to the benefit of those with a gold investment.

Mr Williams, who writes for mineweb.com, said: "When immediate liquidity needs unwind, gold and silver could see a substantial rise given the inflationary element in all the major rescue packages unfolding around the world, and as the current trend of dollar strength diminishes."

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