Gold Price of $2,000 per oz is 'quite likely'

An up-and-coming market debt and commodities product manager claimed on Tuesday (March 10th) that Gold Prices could reach $2,000 per ounce in the next 12 months, Reuters reports.

The yellow metal has been predicted to have a strong year by a number of commentators, based on the ongoing economic downturn and rising government debt.

However, few have expressed as bullish sentiments as Christopher Wyke, who oversees UK fund house Schroders' commodities fund, which holds around $4.5 billion in assets.

Although he has backed down from his claim last June that the Gold Price could reach $5,000 per ounce, Mr. Wyke believes that inflation fears and a weaker dollar will push it higher in 2009.

He told the news provider: "If you saw the dollar resume its fall and maybe toward the end of this year you started seeing people worried about the inflationary consequences of US government policies, then gold prices could move up very sharply.

"In the next 12 months, if that were to happen and the dollar were to fall, a gold price of $2,000 per ounce is quite likely."

A similarly bullish outlook was expressed last week by Paul A Drockton, president of MoneyTeachers.org, a company which offers online investor education.

He predicted last year that gold could go to $2,000 per ounce but is now aiming even higher after seeing an "astonishing" level of interest in his firm's gold investment products.

Commenting on his previous forecast, he said: "I was afraid of creating a panic with my clients, so I kept the projections very conservative. I really wanted to say that they would see $5,000 per ounce in the next few years."

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