Gold News

Gold Prices 'to reach $1,900 per oz' in next four years

A senior figure at Edison Investment Research claimed on Friday (October 16th) that Gold Prices could reach $1,900 per ounce by 2013, the Daily Mail reports.

The yellow metal has delighted investors with its performance during a bull run which started in 2001 and it reached an all-time high of $1,070 per ounce last week.

Gold is often bought as a hedge against inflation and Charles Gibson, head of mining research at the firm, believes this trend will maintain buying volumes for the foreseeable future.

He told the newspaper: "If inflation rears its head again, which will happen if unemployment eases and banks begin to lend again, that will provide enough headwind for a second phase of [gold's] bull run.

"And fundamentally, supply will never be able to keep pace with demand. In addition, with oil at circa $75, if it stays around that level until next March, that will represent a doubling in the cost per barrel, which will drive inflation."

Last week, Bernard Sin, head of currency and metals trading at Geneva-based bullion refiner MKS Finance SA, also expressed a positive outlook for the future of Gold Prices.

"Gold is basically ticking inversely to the dollar, and the dollar is a bit weaker," he said in an interview with Bloomberg.

"As long as the dollar is weak, gold should trade higher."

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