Gold News

Gold Prices 'to reach all-time high' later this year

Calyon analyst Robin Bhar claimed on Wednesday (June 23rd) that Gold Prices could hit an all-time high later this year, Bloomberg reports.

The yellow metal has declined in recent weeks and is currently trading at $935 per ounce, some way short of its record level of $1,030 per ounce, which arrived last March.

However, Mr. Bhar, from Credit Agricole SA's investment banking unit, explained that he expects the dollar - which tends to move in the opposite direction to the Gold Price - to suffer in the remainder of 2009.

"Gold can spike towards an all-time high this year and that would be because of the weaker trend in the US dollar and ongoing stimulus measures," he told the news provider.

"We do expect rising inflation expectations, which should be positive for commodities and particularly gold."

Last week, VTB Capital analyst Andrey Kryuchenkov expressed an equally optimistic prediction for the movement of gold in the next six months.

He explained that UK government ministers are intending to cut back on their attempts to stimulate the economy as the threat of inflation is looming, thus increasing gold's appeal as a hedge.

"Provided this talk from policy makers intensifies towards the end of the year, we might see another strong rally in gold," he told the Daily Resource.

"Your average investor knows that G8 finance ministers are already pondering rising inflation."

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