Gold price 'will continue its upward trend'

Salman Partners Inc suggested yesterday (September 30th) that gold prices will continue on a steady upward slope over the next 12 to 18 months.

The independent investment dealer claimed that the ongoing nature of the global credit crisis will weaken the dollar further and see gold investments continue to surge.

Furthermore, it claimed that prices may average above the $900 per ounce mark during the fourth quarter and that gold bullion will average $950 per ounce in 2009 and $1,000 in 2010.

The predictions were made by the company's senior mining analysts Haytham Hodaly and Raymond Goldie in a new report, with one section reading: "The current financial market issues are not short term.

"In situations of economic or political uncertainty or conflict, gold has been considered a safe haven. The price of gold is primarily influenced by investment demand, which is primarily related to the expected strength or weakness of the US dollar.''

Those views have been strongly corroborated by William Kwan, bullion director of Gold Capital Management in Singapore, who claimed that gold could hit $1,200 per ounce in the next six months.

He added: "With renewed investment demand coming from gold investors for portfolio protection, it's most likely gold will continue its long-term upward trend in the next three years."

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