Gold price could be boosted as OPEC hints at further cuts

The president of the Organisation of Petroleum Exporting Countries (OPEC) hinted over the weekend that another oil production cut could be on the cards in the near future.

The 13-country cartel announced at an emergency meeting in October that it would slash output by 1.5 million barrels per day in an attempt to boost flagging oil prices.

Now Chakib Khelil, who is also Algeria's energy minister, has explained that further reductions may be required when OPEC meets next on December 17th in his home country.

Any such move could boost the price of gold - which tends to follow the movement of the crude oil price - and herald a surge of investment in the yellow metal.

Speaking at an energy industry seminar on Saturday (November 8th), Mr. Khelil stated: "We have always said that our objective is 70 to 90 dollars a barrel. If the barrel price does not reach this level, there will probably be another (production) cutback."

Oil prices have plummeted considerably from the record levels of $147 per barrel seen in July, while gold prices fell by 16 per cent in October - the highest monthly fall for 25 years.

However, with OPEC looking to take decisive action, anyone looking to make a gold investment may be tempted to enter at the relatively low current price.

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