Gold News

Gold Prices could hit $1,100 'by the end of the year'

Globlex Securites has claimed today (May 5th) that Gold Prices could rise to $1,100 per ounce by the end of 2009, The Nation reports.

The yellow metal has experienced a volatile year to date, pushing up close to its all-time record price of $1,033 - recorded last March - in February, before cooling towards the $900 mark.

However, Thanapisal Koohapremkit, derivatives adviser for the firm's Securities Business Line One division, explained that Gold Investment is prudent as the economy will not recover by the end of the year and inflation will return.

He told the news provider: "The gold price is currently traded at $890 per ounce, but if it declines to $880 the price could drop even further to $850 [in the short term].

"Once the economy recovers, gold investors may diversify into other investments, but the gold price is unlikely to decrease to $700 per ounce as in the past."

Gold's appeal as a store of wealth in tough times was also alluded to recently by Ahmed bin Sulayem, executive chairman of the Dubai Multi Commodities Centre (DMCC).

Speaking ahead of his organisation's DMCC Gold Convention 2009, Mr. Bin Sulayem explained that volatility in equity markets will keep investors turning to gold.

"As an asset class, gold has retained its allure and safe-haven appeal amidst the current challenging economic environment," he said.

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