Gold Price to go above $1,100 in 2010, says Deutsche Bank
Deutsche Bank revealed yesterday (October 2nd) that it expects the Gold Price to hit record levels next year due to dollar weakness and inflation fears, Reuters reports.
The highest level ever reached by the yellow metal was $1,030 per ounce, which it attained in March 2008, and it is currently trading at just under $1,000 per ounce.
Now the largest bank in Germany has announced that it is increasing its previous price estimate by over 30 percent in predicting that gold will surpass $1,100 per ounce in 2010.
In a note quoted by the news provider, it said: "We are positioning for fresh highs in the Gold Price.
"We expect this will be driven by a resumption in dollar weakness as well as an increase in inflation volatility, which has historically been beneficial to gold prices."
Those comments were strongly corroborated last week by John Meyer, an analyst at Fairfax, which is a prominent investment bank with its headquarters in London.
Speaking to Reuters, he also picked up on the travails of the dollar - which moves in the opposite direction to gold - and explained that further losses can be expected.
"Expectations for ongoing dollar weakness are likely to generate further investor buying in gold on a worldwide basis," he told the news provider.
"As confidence returns to markets the dollar, which was seen as a safe haven, is likely to fall."
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