Gold 'may double by 2010'

The outlook for gold prices is good, despite fears that the floor in the dollar would be damaging for the precious metal.

This statement was made by metals analysts John Hill and Graham Wark of Citigroup, who said that the current forecast for the economy indicates much the same as recently, which could be supportive for gold prices.

"We believe the drivers of the gold bull market remain intact, heading into autumn. Longer term, we would not be surprised to see gold double from current levels as the global policy prescriptions for the credit crunch remain powerfully and uniformly re-flationary," the analysts noted.

Mr Hill and Mr Wark said they believe gold will see a $1,000 an ounce average in 2010.

Citigroup is a leading financial services company with some 200 million accounts in over 100 countries.

Last month, GFMS chairman Philip Klapwijk said that he believes the good run for gold bullion is not yet over and that gold investment is still a good opportunity.

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