Gold price 'will reach $1,000 per oz' in next three years

A top analyst at global investment bank Morgan Stanley has claimed today (November 13th) that gold prices could go past $1,000 per ounce by 2011, Bloomberg reports.

The yellow metal has been on something of a rollercoaster ride, doubling in value in the past six years before reaching a high of over $1,030 per ounce in March 2008.

It has subsequently lost 31 per cent of its value but Hussein Allidina, Morgan Stanley's commodity analyst, has explained that it is now on the verge of a steady recovery.

He told the news provider: "Mining production actually peaked in 2001 and has since been declining.

"When I look at the demand side, as income growth accelerates, the consumption of gold for jewelry purposes increases.''

The view that gold is about to embark on an upturn has been shared by Donald Doyle, chairman and CEO of New Orleans-based gold dealership Blanchard.

Although Mr. Allidina is cautiously predicting a rise, Mr. Doyle is far more bullish about the retesting of $1,000 per ounce, which he believes could happen in the next few months.

"Fundamentals will re-establish themselves as the driver of the gold market, and we believe we'll see $1,250 gold during this period," he said.

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