Gold News

Gold Prices 'to average $1,116 per ounce' next year

A senior figure at Dundee Group claimed yesterday (October 1st) that Gold Prices will average $1,116 per ounce over the course of 2010, MiningMX reports.

Chief economist Martin Murenbeeld, a renowned gold expert, offered his views about the future for the yellow metal at the recent Denver Gold Forum in Colorado.

He outlined a range of incentives to Buy Gold, focusing on global imbalances that are impacting the US dollar, plus changing central bank attitudes towards the metal.

"The US trade deficit with China is unsustainable, the US energy deficit needs corrective action and Asian currencies need to rise," he told the news provider.

"Gold is too cheap for an official monetary role. Even at levels above $1,000/oz, gold still looks cheap in terms of other financial assets. Mine supply of gold will be flat or headed downwards and future supply growth looks anaemic."

Meanwhile, Dan Smith, an analyst at Standard Chartered - a British bank with a network of over 1,700 branches - has also thrown his weight behind the merits of making a long-term gold investment.

In an exclusive interview with Reuters, he explained that the amount of money moving into gold is already significant and is expected to rise over the coming months and years.

"For most of the precious metals investor inflows have been very strong," he told the news provider.

"It suggests to us gold is going to remain resilient. Our advice is you should be long in gold."

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