Gold News

Gold Prices 'could reach $3,000 per ounce'

The head of American Precious Metals Advisors claimed today (August 25th) that Gold Prices could eventually reach $3,000 per ounce, Seeking Alpha reports.

Jeffrey Nichols admitted that in the short term, the yellow metal could prove to be particularly volatile, with sharp corrections punctuating an overall upward curve.

However, he has highlighted an "agonizingly slow" economic recovery, the inflationary consequences of increased debt in the US and the erosion of the dollar as key reasons for taking a long position in gold.

He wrote on the website: "We remain extremely optimistic on the Gold Price outlook - but, unlike many other bullish analysts, we believe the metal's ascent will take several years to reach its next long-term cyclical peak.

"Ultimately, gold will most likely climb into the $2,000 to $3,000 range - but it could go even higher given the right confluence of economic and political developments."

Those comments come after the Dubai Multi Commodities Center revealed last week that imports of gold bullion into Dubai increased by 13 percent on a year-on-year basis to 300 tonnes in the first half of 2009.

Jeffrey Rhodes, chief executive of Dubai-based independent financial firm INTL Commodities DMCC, explained that investors in the Middle East are realizing the yellow metal's appeal.

"I think it's fair to say that the investment demand level for gold for the Middle East on the whole has been very buoyant. Physical gold is still king in the Middle East," he told Reuters.

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