Gold prices 'to hit $900 per oz' in first half of 2009

Australian organisation Resource Capital Research (RCR) claimed yesterday (November 26th) that it expects gold prices to push through the $900 per oz barrier in the coming few months, miningmx.com reports.

The yellow metal has been showing signs of a recovery in the past week after appearing to settle around the $725-750 per oz mark following a volatile month in October, when it last passed $900 per oz.

Now the exploration and mining equity research company has explained in its latest quarterly report that the current climate is providing a decent opportunity for investing in gold.

One section of the report, quoted by the news provider, reads: "RCR expects gold to trade in the range of $750 per oz to $850 per oz in the next month or so, followed by a potential upturn to around $900 per oz in 1H09 (first half 2009) assuming US economic conditions deteriorate relative to other major economies and the US dollar weakens."

The claim that the $900 per oz barrier will be retested next year was supported recently by Stephen Walker, head of global mining research at RBC Capital Markets, the corporate and investment banking division of the Royal Bank of Canada.

"We believe that the gold market should begin to price in a recovery in the global economy and, with that recovery, an increase in inflation expectations, particularly given the enormous amount of monetary and fiscal stimulus being applied by central banks," he said.

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