Gold prices 'part of a long-term cycle'

An economist has predicted the long-term trends for gold prices based on a number of world factors.

Resource Investor reports that Dr Martin Murenbeeld, speaking at the New York Hard Assets Investment Conference last month, said he was "bullish" on gold prices for a number of reasons.

Not only would inflation, the dollar and the monetary policy combine to support gold prices Dr Murenbeeld said, but demand and supply, geopolitics and past commodity cycles would also benefit gold investors.

"We are in one of these lulls in a very long-term cycle that is upwards. Currently the price of gold has been rising for about seven years. The shortest cycle is ten years - I believe we will go much longer than ten years this time around," he said.

Dr Murenbeeld added that the price of gold bullion in 2009 could be around the $1,008 an ounce mark.

Demand for gold has increased recently as a result of greater investment in countries such as China and Russia.

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