Gold News

Gold Prices set to 'really move' upwards

A highly successful market speculator claimed yesterday (August 24th) that Gold Prices should push past $1,200 per ounce in the future, according to the Gold Report.

The yellow metal achieved its all-time high of $1,030 per ounce last March but critics note that it has consistently struggled to significantly break the four-figure barrier.

Now Victor Goncalves, whose resource stock selections in late 2008 have realized gains of up to 800 percent, believes that a simple look at the basics of supply and demand suggests that gold should move higher.

"I think it's do-or-die right now. It's either going to really move or peter out, and I think it's really going to move," Mr. Goncalves, who is also president of the Equities and Economics Report, told the news provider.

"[In June], I saw the price of gold year-over-year was two percent lower. Demand was up 38 percent. That normally doesn't make a lot of sense, so I did some quick calculations to see where the price of gold should end up in relation to the increased demand. In theory, it should be $1,273 and I suspect it will get there."

Those comments come after Andrey Kryuchenkov, an analyst at VTB Capital, which is one of Russia's leading universal banks, also sounded a positive note for the future of the Gold Price.

He explained in an interview with Reuters that, despite the current prevalence of a deflationary economic environment, the threat and eventual arrival of inflation should keep the yellow metal strong.

"For the rest of the month gold will be trading on sentiment [and on] the dollar," he told the news provider.

"I expect prices to recover well when we have full-blown inflation, as [gold is] an inflation hedge ... but right now we are still far off, we are still pretty much in deflation."

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