Gold News

Gold Prices 'could average $1,000' in next two years

A prominent analyst claimed on Saturday (June 6th) that he expects Gold Prices to average between $900 per ounce and $1,000 per ounce in the next two years.

Mike Starogiannis, mining research analyst at Wolverton Securities, has conceded that the yellow metal can be volatile and prone to sharp spikes in either direction.

However, he explained in an interview with the Gold Report that such trends are likely to be temporary and that Gold Investment would be sensible from a longer-term viewpoint.

He told the news provider: "I think that gold is positioned to go higher from here strictly based on the current fiscal policy of the US in terms of printing cash to fund a lot of new infrastructure projects and economic stimulus packages.

Eventually, in the mid-term, that money will trickle through the economy and inflate the US dollar. Because gold has always been a historical hedge against US dollar inflation, just fundamentally based on that we could see upward movements."

A similar view was outlined recently by Pradeep Unni, a Dubai-based analyst for Richcomm Global Services, who explained that a number of economic factors are increasing gold's appeal.

"Extreme dollar weakness is adding to the momentum," he said in a note quoted by Bloomberg.

"Ascending oil prices, concerns of inflation and fears of massive US debt have certainly been supporting [gold]."

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