The head of a New Jersey-based brokerage firm has suggested that Gold Prices could reach as high as $1,250 per ounce by the end of the year, Bloomberg reports.
Investors have been turning to the yellow metal in recent weeks over fears about the dollar and the prospect of oil price-led inflation, taking it to a record high of $1,070 per ounce.
However, Philip Gotthelf, president of Equidex Brokerage Group in Closter, explained that there is no reason why additional gains cannot be made in the final two months of 2009.
He told the news provider: "Gold has been pushing higher because it's no longer just a hedge against commodity inflation, it's also a hedge against a change in world-monetary standards."
Those comments were strongly backed up last week by Charles Gibson, head of mining research at Edison Investment Research, in an interview with the Daily Mail.
He explained that the longer-term outlook for the Gold Price is also particularly rosy and predicted that it could move to approximately $1,900 per ounce in the next four years.
"If inflation rears its head again, which will happen if unemployment eases and banks begin to lend again, that will provide enough headwind for a second phase of [gold's] bull run," he told the publication.
"And fundamentally, supply will never be able to keep pace with demand. In addition, with oil at circa $75, if it stays around that level until next March, that will represent a doubling in the cost per barrel, which will drive inflation."
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