Gold prices 'to gain 30 per cent'

A global poll of analysts and traders has revealed bullish forecasts for gold prices through 2008 and into 2009.

The survey of 40 people, carried out by Reuters, found that the median price was predicted to be $930 an ounce, more than a third higher than gold's average price of $696.95 in 2007.

"The economic picture will continue to deteriorate, so safe-haven flows should support gold higher to the end of 2008 and into 2009," commented Daniel Smith, metals analyst at Standard Chartered.

Meanwhile, Matthew Turner, an analyst at Virtual Metals, told the news provider he believes gold prices "could really perform" from investment demand if the credit crunch continues and may reach "well above" the $1,000 an ounce last seen in March.

In related news, the Financial Post reports that mining organization Scotia has increased its ten-year average gold price forecast by 13.6 per cent for 2009.

This is based on gold's appeal as an inflation hedge, oil prices and troubles for global financial companies, as well as the negative impact this has on the US dollar.

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